J.C. Penney is trying to find support after getting slammed in the last week, and trader is betting on a long-term floor in the stock.
optionMONSTER systems show that a trader sold 6,000 January 2016 5 puts for $0.80 and bought 7,500 January 2017 4 puts for $0.84 today. Volume was below previous open interest in the 2016 contracts, but there was no open interest in the later options.
This could be a diagonal spread. But it is more likely that the trader is rolling a long-put position forward by a year to a strike that is $1 lower. This could be either an outright bearish play or ahedge on an existing position in the stock.
— Option Monster