Large bear put spread initiated on Financial Select Sector SPDR (XLF)

Vera Bradley, Inc. (NASDAQ:VRA) – Call options on the maker of bags and accessories are active today, but the preponderance of selling over buying in the most active contracts suggests some traders doubt shares in Vera Bradley, Inc. (NASDAQ:VRA) will push higher in the near term. The stock today trades down 2.6% on the session at $23.71 as of 12:20 p.m. ET. The Jan. $25 strike calls changed hands roughly 1,000 times during the first half of the trading day against previously existing open interest of 471 contracts. Time and sales data suggests most of the volume was sold at an average premium of $0.43 apiece. Call sellers walk away with the full amount of premium received on the position as long as Vera Bradley, Inc. (NASDAQ:VRA) shares settle below $25.00 at January expiration. If traders are naked short the calls, losses start accumulating on the transaction in the event that shares in Vera Bradley, Inc. (NASDAQ:VRA) rally at least 7% by expiration next week.

Caitlin Duffy

Equity Options Analyst

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