Carter’s (CRI) tumbled 23.8 percent on October 27 after the company delayed its quarterly earnings release amid a review of its accounting for margin support to wholesale customers. Shares are down $2.77 to $21.27 today after the company announced that it will restate financials for the fiscal years 2004 through 2008.

Shares are down and options volume is 3X the usual, with 8,155 calls and 2490 puts traded so far. Not everyone is heading for the hills. While it appears that sellers are dominating the action in the Nov 22.5 calls, two-sided trading (buying and selling is being seen in the Dec 22.5 calls (today’s most actives.) Meanwhile, after spiking to 83 percent on Oct 27, average implied volatility in CRI has eased back to 68.7, down from 69.5 late yesterday.