Is There More Pain To Come For Gap Before 2022?

Gap Inc GPS is scheduled to report its third-quarter earnings today. The stock lost 1.88% to reach $23.49 in after-hours trading on Monday, after closing at $23.94, down 0.58%.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said there was nearly three times the average daily put volume on Monday.

“Right now, the market is implying a move of over 11% by the end of the week,” he added. This is substantially higher than the 5% or so the company has averaged over the last eight quarters.

The most active were the November 26 weekly 22 strike puts. There were buyers of 5,161 puts at an average price of 58 cents. Traders are betting that the earnings could be disappointing and that the stock will decline into Friday’s close, he said.