Credit: Shutterstock photoWilliams Sonoma is back to potential support, and one investor is betting that it will hold its ground.
optionMONSTER's tracking systems detected the sale of about 7,500 August 29 puts for $0.60 and $0.55 against open interest of just 200 contracts. The trade accounted for almost all the options activity in the retailer of household goods.
WSM is up 3.37 percent to $31.31 in afternoon trading but has lost 16 percent of its value in the last month. The shares are now back to same level where they peaked in April 2010, which could lead some chart watchers believe that further downside will be limited.
The company's last earnings report on May 19 beat expectations and management raised full-year guidance amid strong online sales. The next release hasn't been scheduled yet, but it will probably occur later this month.
Overall option volume in the stock is 9 times greater than average so far today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.