Traders are losing hope in Tiffany.
The jewelry retailer has been falling hard since it peaked at an all-time high over $84 barely two weeks ago, and it is down another 1.23 percent to $72.48 so far today.
The biggest option transaction occurred in the August 70 calls, where about 4,400 contracts were sold for $2.83 to $2.92. Volume was 5 times greater than open interest in the strike.
The calls were probably sold by an investor who owns shares in the luxury retail company. If TIF stays above $70, he or she will have locked in an exit price of $72.83 to $72.92, while if it falls below that level the credit received today will provide some downside protection. (See our Education section)
TIF's last earnings report on May 26 beat forecasts on the top and bottom lines, and management also raised full-year guidance. The next release is scheduled for the morning of Aug. 26.
Overall option volume in the name is 4 times greater than average so far today.
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