Protection Purchased on Limited Brands (LTD)

Shares of Limited Brands Inc. LTD are lower on the session by 1.255, currently trading at $26.15. The stock has been moving largely higher over the past three months, off of a recent low near $21.80, though is now nearing resistance at $28.00. Options traders are buying protection on the name this morning. A short while ago the October $27.00 put was sold 1,000 times for $1.20 and the October $26.00 put was purchased 2,000 times for $0.90. Volume exceeded open interest on the $26.00 strike, but not on the $27.00 strike. This appears to be a put roll lower, where the trader takes profits on long puts and initiates a higher gamma play with the proceeds to give more protection should shares continue lower. Put volume is running at over 3.5x the daily average. Limited Brands, Inc. is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories under various trade names. The company sells its merchandise primarily through its retail stores in the United States and Canada and through its Websites and catalogues. The company operates in two segments: Victoria's Secret and Bath & Body Works.