Options Traders Turn Bearish on Macy's Stock Ahead of Earnings

The security is looking at its second-straight daily drop today

Digital Content Manager
Aug 18, 2022 at 1:36 PM
facebook X logo linkedin


Macy's Inc (NYSE:M) will join the long list of retailers to recently report earnings, with its numbers for the second quarter due out next week before the open on Tuesday, Aug. 23. The stock is being weighed upon by fellow department store name Kohl's (KSS) gloomy full-year forecast -- last seen down 1.5% at $20.11. This will mark the equity's second-straight daily drop after the equity's rally toward the $21 level was rejected by the 110-day moving average this Tuesday. 

M aug 18

The equity has a history of impressive post-earnings pops, including a 19.3% surge after its May report. In fact, looking back two years, M has managed a next-day win six out of eight times. The security has averaged a 9% next-day swing during this time period, regardless of direction, which is smaller than the 15.1% move options players are pricing in. 

Speaking of options players, Macy's are upping the bearish ante ahead of the retailer's earnings event. During today's session, 17,000 calls and 17,000 puts have been exchanged so far, with puts running at double the volume that's typically seen at this point. The most popular contracts are the August 20 and 20.50 puts, with positions being sold to open at the former. 

There's been a shift toward puts in the options pits. While call volume still outweighs put volume overall, the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 70% of readings from the past year. Suggesting a healthier-than-usual appetite for these contracts of late. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI