Bare Escentuals (BARE) is heating up with put activity on our systems today with activity that is running 6x the normal expected. The focus is taking place out in the November 10 put strike, where 3.3k have traded exceeding the current open interest of 437 contracts. Order flow shows a bearish bias with 90% of the activity traded on the the offer. We are also seeing a trader move to the other side of the board and sell calls at the 10 strike in November to offset the cost of the puts purchased.

Looking at a chart, shares look to be topping out with prices not able to move above the wicks on the daily candle chart. Volume is increasing on the move lower with prices running through the 10 EMA and finding support at the 20 SMA intra-day.