Huge Put Buyer in Coach

Coach, Inc. COH, the maker of women's handbags and leather accessories, saw its shares drop more than 10 percent Tuesday after posting lower-than-expected Q4 sales results. Late morning option activity, including the purchase of 20,000 August 52.5 puts for a premium of $2.80, showed at least one investor believes the company's shares have more downside potential. This 20,000 contract trade has helped push Tuesday's total contract volume to more than six times the company's daily average with an unusual high put/call ratio of 2.74.