Ann Taylor (ANN) has come under pressure this morning, falling $1.57 to $31.28 on increasing volume of 1.2 million shares, and options volume is 2.5X the daily average, but with no headlines on the stock to explain the heightened activity. 3,350 calls and 2,600 puts traded on the retailer. Jan 31 puts, expiring at the end of this week, are the most actives. 2,170 taded, including a 1,255-lot for 55 cents and apparently a closing trade, based on ISEE dat. Jan 32 and 33 calls are the next most actives. Most of the flow has been on the bid and possibly liquidating activity as well. Yet, 30-day ATM implied volatility in ANN options is moving up 3.5 precent to 36.5, as the stock falls to multi-month lows. Earnings were last reported on 11/28.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.