J C Penney Options Bears Win Big After Earnings

The retail stock is near levels not seen since November

May 17, 2018 at 10:10 AM
facebook X logo linkedin


Amid a week full of retail earnings reports, department store J C Penney Company Inc (NYSE:JCP) said its first-quarter adjusted loss of 22 cents per share was slightly narrower than analysts were expected. However, the retailer's $2.58 billion in revenue missed the mark, and same-store sales grew at a slower-than-anticipated pace in the extended cold-weather season. A downwardly revised full-year adjusted profit forecast is only adding to the bearish buzz, with JCP stock down 10% to trade at $2.76 -- on track for its worst day since December.

This negative price action is nothing new for JCP stock. The shares have shed nearly half their value over the past 12 months -- most recently pressured by its 40-day moving average. Plus, today's bear gap puts the security near levels not seen since November, when J C Penney shares tagged a record low.

This marks the stock's fifth earnings-related plunge over the past six quarters, and options traders appeared to be bracing for a repeat of history. The May 3.50 put is home to peak open interest on JCP, with 64,437 contracts outstanding, and data from Trade-Alert points to possible buy-to-open activity here back on April 30.

Today, with J C Penney stock on the short-sale restricted list, options volume is running at a quick clip in early trading -- and more puts than calls have been traded. Speculators may be liquidating positions at the in-the-money May 3 put, JCP's most active option so far.

 

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