A large put trade has been made in Tiffany as its shares have fallen ahead of the iconic company's holiday sales report Wednesday.
One trader Monday morning bought 10,000 of the January 20 puts for $0.35 against open interest of 48,900 contracts, according to OptionMonster's tracking systems.
It is unclear, however, whether this trade is a new purchase or just closing out an existing position.
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TIF shares have fallen precipitously during the economic crisis, having been cut roughly in half since early September to trade around $22 today. Tiffany has been followed closely as a bellwether for luxury names, which have proven far more vulnerable in this severe recession than they have in previous downturns.
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.