Puts Active on Coach (COH)

Shares of Coach (COH) are trading higher on the session by 0.61%, trading at $54.64. The stock has been mired in a downtrend for the past six months, but has recently begun to find bids around the $52.50 historical support/resistance level.

Options traders are active in the puts today with overall volume running at 2.8x normal volume. 13,325 puts have traded on the name so far. The heaviest action is coming in November.

Moments ago, the Nov $50 put traded 5,000 times, between the spread, for $1.75. Seven seconds later, the Nov $52.50 put traded 7,500 times, near the offer, for $2.65. Volume has not exceeded open interest on either strike yet; tomorrow’s open interest will shed more light on whether this was an opening or closing transaction.

The action has the look of long put holders selling out of their positions, which would supplant the idea that shares are near a bottom.

Near-term implied and historical volatility is registering 35% and 33%, respectively.

Coach, Inc. is a marketer of fine accessories and gifts for women and men. Coach's product offerings include women's and men's bag, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrance.

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.