Today I bought May $34 puts on ANF for $3.25 per share. I still have my $34 February puts, which are a loss at this point. I bought the May puts cheaply on a 7% jump in the stock price following a positive monthly sales report which I believe to be misleading. When/if the share price drops again, I may close my February puts, rolling the remaining value into the May puts. However, with option expiration in two weeks (on the 20th) and a possible catalyst in ANF's earnings report (on the 16th) it may not be worth it.
Here's the sales report I mentioned:
http://www.prnewswire.com/news-releases/abercrombie--fitch-reports-january-sales-results-83534537.html
Note, in the 5th paragraph "At the beginning of the fiscal month, the value of complimentary gift cards issued but not redeemed was approximately $22 million, substantially all of which has been recognized in sales in January." (emphasis mine). Eleven words yet O! how they catch the heart.
