AAL

Kroger Stock Takes Out Key Level On Potential Alibaba Collaboration

KR stock is on track for its best day since November

Managing Editor
Jan 25, 2018 at 9:47 AM
facebook X logo linkedin


For the second time in as many weeks, Kroger Co (NYSE:KR) is caught up in e-commerce buzz. Specifically, reports have surfaced that the grocer conducted early-stage business talks with Chinese e-commerce giant Alibaba (BABA). It is unclear whether the reported talks will amount to an actual partnership, but they could represent a continued effort to counter Amazon.com (AMZN) and its foray into the grocery industry after its purchase of Whole Foods last year.

The news has Kroger stock up 1.9% to trade at $30.06 this morning, trading above the $30 level for the first time since a mid-June bear gap. Since falling to a three-year low of $19.69 on Oct. 2, KR stock has added back 56%, guided higher by its rising 30-day moving average. 

In the options pits, the equity's Schaeffer's put/call open interest ratio (SOIR) sits at 1.99. Not only does this indicate put open interest doubles call open interest among contracts expiring within three months, but the ratio ranks in the 97th percentile of its annual range, pointing to a much bigger-than-usual put bias among near-term traders. An unwinding of this apparent skepticism could add fuel to KR's fire.

The good news for options traders is that Kroger stock has a Schaeffer's Volatility Index (SVI) of 28%, and that is just 14 percentage points from a 12-month low. This hints at low volatility expectations being priced into near-term options contracts.

 
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.