Avon Products has been struggling, and the bears are hungry for
optionMONSTER's Depth Charge monitoring system detected the
purchase of 4,500 October 16 puts for $1.95 and the sale of an
equal number of August 16 puts for $1.30. Volume was below open
interest in the August contracts but not the October options, which
suggests that an existing position was rolled from one contract to
AVP is down 3.33 percent to $14.79 in midday trading and has lost
more than one-quarter of its value in the three months. Quarterly
results from the cosmetics company have been consistently poor
since late 2011, and now its new CEO is grappling with overseas
The stock is trying to hold its lowest level since March 2009. If
support breaks, some traders may expect the selling pressure to
That is apparently the hope of today's put buyer, who is using
in-the-money contracts. Those will let them track declines in the
stock price closely and are used as substitutes for short-selling a
stock. (See our
Overall option volume is twice the daily average so far in the
session, according to Depth Charge. Puts outnumber calls by more
than 20 to 1.
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