Paper bought 5750 of the $GPS Feb 26 weekly 25.5 puts ranging from .70 out to .90 a contract.
Gap Inc., trading 25.92 with an IV30 45.81 and HV10 of 48.91, is seeing put buying today.? The stock, with an ADV of 6800 and an OI of 98,750 contracts, saw a Feb 26 put buyer.? So far, paper bought 5750 of the GPS Feb26 weekly 25.5 puts ranging from .70 out to .90 a contract.
GPS which has earnings next week on the 25th is seeing players bet that the company is going to have disappointing earnings.? These puts will do well if after earnings GPS is below 24.50 coming out of earnings, or possibly more.? This could be a hedge, but the way the trades are going up, they do not appear to be.? Based on the OI all of the put purchases are opening.
This trade should be considered bearish GPS and bullish GPS volatitliy.