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.
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