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Sears (S – 33.20) is a top U.S. retailer, with about 850 mall-based stores. Additionally, the firm owns and operates 1,400 specialty stores including hardware and automotive-supply franchises. This morning, the company announced third-quarter earnings of 81 cents per share, topping year-ago numbers by roughly 17 percent. S's earnings also topped analysts' estimates by a penny per share.
Since early June, S shares have been oscillating sideways in a range between the 30 and 37 levels. This sideways pattern has rendered the equity's moving averages fairly worthless for spotting trends.
Option activity is not overwhelming on the security, as the site of heaviest open interest is the January 40 call, which is home to 2,844 contracts. The heaviest site of put open interest is the out-of-the-money January 30 strike, where 2,261 contracts reside.