On perhaps the slowest market day of the year, volume across the major averages traded at record lows. However, Gildan Activewear GIL – NYSE attracted one of the most unusual trades we’ve seen in quite a while when a sharp trader bought 8,000 GIL November 30 puts for $1.00 each or a total cost of $800,000.
On average, GIL only trades 61 put options per day, meaning this single order accounted for 131 times typical volume. To pay off, GIL must lose 5.2% to the break-even price of $29.00 by expiration.
While the spike in put activity drove GIL down hard today, the chart still looks healthy from a long-term perspective. However, with such a significant bet to the downside, you might want to steer clear of GIL.
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