Bears Keep Flocking to Abercrombie & Fitch Co. (ANF)

Abercrombie & Fitch Co. (ANF) put buying has been popular of late

Digital Content Group
Jan 9, 2015 at 11:01 AM
facebook X logo linkedin


Abercrombie & Fitch Co. (NYSE:ANF) lost 0.8% yesterday, despite a broad-market rally, and put traders responded in force. The contracts crossed at an 82% mark-up to the usual intraday rate. Against this backdrop, the stock's 30-day at-the-money implied volatility popped 2.7% to 47.2%, indicating rising demand for short-term strikes.

Most active was ANF's January 2015 29.50-strike put, which saw buy-to-open activity. These speculators are banking on the shares continuing to descend south of $29.50 through next Friday's close, when the front-month options expire.

Taking a step back, this put-buying trend is business as usual. During the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ANF has racked up a put/call volume ratio of 1.65 -- in the 71st percentile of its annual range.

Option bears are in luck this morning, as ANF is following sector peer Gap Inc (NYSE:GPS) lower, off 2.3% at $28.45. In fact, delta on the aforementioned put has moved to negative 0.65 from negative 0.53 at Thursday's close, signifying a higher probability of an in-the-money finish.

No matter what happens in the next week, though, one thing's for sure -- short-term Abercrombie & Fitch Co. (NYSE:ANF) options are costly right now. The stock's Schaeffer's Volatility Index (SVI) of 65% sits at the top of its annual range.

Daily Chart of ANF since August 2014

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI