Abercrombie & Fitch (ANF, $31.96, down $2.29) is down 7% today and the September 32 puts (ANFUJ, $2.00, up $0.80) are up 67%. We went with the puts options at the open on Friday for $1.25 and I had accidentally listed the August 32.50 puts (ANFTZ, $1.05, up $0.70) at 40 cents as well. I can’t take credit for the August puts although some of you have emailed me and thanked me for the trade.
Wells Fargo (WFC, $26.82, down $0.91) is down over 3% and the September 26 puts (FHUUZ, $1.25, up $0.35) are right near our entry price. If the market continues to weaken these puts could quickly turn in-the-money. Our other bank plays have longer expirations and Citigroup (C, $4.02, down $0.02) and Bank of America (BAC, $16.77, down $0.62) have held up well depite the Dow’s 165 point drop today.
Imax (IMAX, $9.05, down $0.15) is holding $9 as the company officially closed its stock offering. The company sold nearly 6 million common shares at $8.50 per share that raised roughly $50 million.
Lowe’s (LOW, $20.86, down $1.97) is down 8.5% and don’t forget Home Depot (HD, $26.36, down $0.78) reports on Tuesday. The August 26 puts (JGLTM, $0.54, up $0.28) have doubled today on Lowe’s misfortunes and traders are loading up the the August 25 puts (HDTE, $0.26, up $0.16) as 4,000 contracts have traded hands. This is option expiration week and if you will recall I talked about these types of weeks during July expiration week. These trades are risky but they can double your money in a day or two as you can see. If you roll the dice on the 25’s just realize it’s all-or-nothing…