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Morning option trade alert on Abercrombie & Fitch
Related Symbols: ANF
An Abercrombie & Fitch (NYSE: ANF) investor could be looking for a range in the stock and appears to be expressing this view by selling a near-term straddle out of the gate. At 9:48 a.m. EST, the investor sold roughly 6,000 March 35 puts and March 35 calls, collecting $2.90 per straddle. This straddle-selling action suggests at least one investor expects the stock to move in a near-term range between $32.10 to the downside and $37.90 to the upside (the breakevens for this trade). The calls are currently trading around $1.47 per contract while the puts traded at $1.43 per contract. Implied volatility of this straddle is 35%. ANF shares are currently relatively unchanged at $35.37 this morning without any news from the company.
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