The bears apparently think Iconic Brand is going from bad to worse.
optionMONSTER's Depth Charge monitoring program detected the purchase of 1,300 August 22.50 puts for $0.55 to $0.85 yesterday. Volume was almost triple previous open interest at the strike, which indicates that new positions were initiated.
Puts move in the opposite direction as shares because they lock in the price where their underlying stock can be sold. Traders use them to hedge long holdings or to speculate on a drop. (See our Education section)
ICON fell 1.15 percent to $24.97 yesterday and is down 26 percent so far this year. The owner of clothing lines including Joe Boxer and London Fog has steadily trended lower since last summer, including a big drop in April after its chief operating officer resigned.
The next earnings report is estimated for July 29, before yesterday's puts expire. The stock is hitting resistance at its 50-day moving average, which could make some chart watchers think that its bearish trend remains in effect.
Total option volume was 6 times greater than average in the session, with puts outnumbering calls by more than 8 to 1.
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