Puts Purchased on Great Atlantic & Pacific Tea (GAP)

Shares of Great Atlantic & Pacific Tea Inc. GAP are higher on the session by 4.60%, currently trading at $2.73. The stock recently cratered (dropping more than 30% in a single day) after the company reported horrific earnings. The stock has been moving lower since January, when GAP was trading above $12.00. Options traders are buying more puts today. The August $2.50 put was purchased 4,500 times, on the offer, earlier in the session; open interest on the strike is only 485 contracts, signaling new, bearish positioning on the name. Given the magnitude of the sell off, today’s action may be hedge buying to long shares. The Great Atlantic & Pacific Tea Company, Inc. is engaged in the retail food business. The company operated 429 stores averaging approximately 42,200 square feet per store as of February 27, 2010. Operating under the trade names A&P, Super Fresh, Waldbaum's, Super Foodmart, Food Basics, The Food Emporium, Best Cellars, Best Cellars at A&P, Pathmark and Pathmark Sav-A-Center, the company sells groceries, meats, fresh produce and other items commonly offered in supermarkets.