The designer, 55, reportedly committed suicide
The shares of Tapestry Inc (NYSE:TPR) -- nee Coach -- are down 1.7% at $44.38, amid reports that designer Kate Spade committed suicide. Tapestry bought Spade's namesake brand last year, though last quarter's Kate Spade sales left much to be desired. Against this backdrop, TPR options are flying off the shelves this afternoon.
It's been a rough few weeks for Tapestry stock. The security gapped lower at the start of May, in the wake of the aforementioned quarterly sales miss. Since then, TPR shares have consolidated around the $44 marker -- right around where they landed after a bear gap in August 2017, and around the equity's year-to-date breakeven. Meanwhile, the stock has struggled to retake the $45 region -- home to TPR's 200-day moving average, and a 61.8% Fibonacci retracement of the security's rally from its October lows to the April 27 four-year high of $55.50.

As alluded to earlier, reports that designer Kate Spade passed away have fueled crazy options volume on TPR. In fact, options volume is running at seven times the average intraday clip, with more than 4,000 calls and 4,000 puts traded. Short-term options are the contracts of choice, and it looks like bullish traders are buying to open the weekly 6/8 45.50-strike call, while option bears are purchasing to open the weekly 6/8 43- and 43.50-strike puts -- the most active TPR options so far today.
Prior to today, bearish bets had been slightly more popular than usual on Tapestry. During the past 10 days across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TPR racked up a put/call volume ratio of 1.17 -- higher than 72% of all other readings from the past year.
Nevertheless, analysts have remained devoted to TPR. Although the shares are well off their late-April highs, 17 of 24 brokerage firms maintain "strong buy" opinions. Plus, the average 12-month price target of $56.27 represents expected upside of roughly 25% to the luxury retail stock's current perch.