Gildan Activewear has pulled back after a big rally, but one
trader apparently thinks that it's on solid ground.
optionMONSTER's tracking programs detected the sale of 2,300 July
22.50 puts for $0.55 against open interest of just 10 contracts.
The activity took place in less than two minutes and accounted for
all the activity in the company so far today.
GIL is down 0.4 percent to $24.92 in afternoon trading. It above
touched above $29 earlier in the month, then fell along with the
rest of the market and has recently been holding support at its
200-day moving average.
obligates the investor to buy shares for $22.50 if they close below
that level on expiration, but their entry price would be $21.95
including the initial credit. Traders often use
when they like a name but don't want to spend capital up front to
get long. (See our
GIL makes inexpensive clothing such as shirts, much of which is
sold to other companies for silk screening.
Overall option volume in the stock is 19 times greater than average
so far today.