RB Trader Sees Unusual Option Activity In Abercrombie and Fitch

There is unusual option activity in Abercrombie and Fitch

, with nearly 6,000 of the December 27.50 puts being sold, according to RB Trader. This compares with open interest of only 51, so over 100 times the existing open interest. The puts were sold with an average price of 0.49, with the seller aggressively hitting the bid. The seller of these puts may be looking to position be buy a buyer on further weakness, with an implied price on the stock of 27.01 (27.50 strike less 0.49 premium received), which is a 7.3 percent discount to the current stock price of 29.15. ANF reported earnings this morning, with EPS of 0.42 beating consensus estimates of 0.41. Guidance, however, disappointed, with revised guidance of $1.50 to $1.65 per share, far below previous guidance of $2.15 to $2.35 a share, and also well below analyst estimates of $1.74 per share. Shares of ANF, which were trading lower on the open by 1 percent, are now higher by 4.7 percent at 29.15.