Puts Rolled on TJX

Shares of The TJX Companies (TJX) are trading lower on the session by 1.37%, at $43.28. The stock has been the darling of retail over the past few years, rising consistently since early-2009 and quadrupling in value.

Recently, shares have begun to tick slowly lower, finally breaking down through the 50-day moving average with force yesterday. With shares off again today, one large, institutional trader is rolling a long put position today.

A short while ago, the October $45.00 put traded 25,769 times for $1.59 just as the November $45.00 put traded 25,769 times for $2.16. While both trades went off in the middle of the bid/ask spread, given the current open interest on each strike (30,240 and 1,775) it is highly likely that this was a roll out from Oct to Nov.

This spread has pushed overall put volume to 15x normal volume with 52,184 contracts traded. Implied volatility is falling today, currently off 2.4% to 23.69%. 10-day historical volatility remains just above 15%.

The TJX Companies, Inc. is the off-price apparel and home fashions retailer in the United States and worldwide. As of January 28, 2012, the company operated in four business segments.

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.