Sarah Wasserman (swasserman@sir-inc.com) Retail issue Kohl's Corporation (KSS) saw a surge in option activity on Friday, with roughly 17,000 contracts changing hands on the session -- triple the stock's expected daily option volume.
Option players showed a preference for the December series, which assumes front-month status after the close of trading this Friday, Nov. 19. The December 47.50 put was a popular choice on Friday, with 2,109 contracts traded -- the bulk of which changed hands at the bid price, indicating that they were likely sold. Open interest increased by 2,036 contracts over the weekend, confirming that fresh positions were added at this strike. By selling to open the December 47.50 put, traders are counting on KSS to remain above the $47.50 level over the next month.
Technically speaking, KSS has been range-bound in the $50 to $55 region for the past several months. Reinforcing the lower rail of this range is KSS' 20-week moving average, which is located just beneath the round-number $50 level. Meanwhile, the $55 level has been a point of stiff resistance for the shares since May.
Despite the stock's lackluster technical performance, option players maintain a rather bullish outlook on KSS, as evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.69, which ranks just four percentage points shy of an annual optimistic peak.
No comments:
Post a Comment