Retail Stock Upgraded on Web Traffic Potential

Puts have recently turned popular in the options pits

Deputy Editor
Sep 15, 2020 at 3:10 PM
facebook twitter linkedin

The shares of VF Corporation (NYSE:VFC) are up 2.2% at $74.84 at last check, after BTIG upgraded the stock to "buy" from "neutral." The firm cited growing demand as well as web traffic, and noted that the concerns involving excess inventory for a couple of their brands are "well on their way to being resolved." 

At the height of the day, VFC was trading at $76.24, above the $75 for the first time since early March. Still down 25.5% year-to-date, the equity is on track to score its fourth-straight weekly win. 

VFC Sep 15

On the analyst front, 10 carry a "buy" or better rating on the security, with the remaining 11 at a tepid "hold." Meanwhile, the 12-month consensus price target of $67.25 is a 9.6% discount to current levels. This leaves plenty of room for upgrades/price-target hikes that could carry the stock higher.

Amid limited absolute options volume, VFC options have taken a bearish turn in the last 10 days. The stock's 50-day call/put volume ratio of 2.44 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 70% of all readings -- revealing a strong preference for puts of late. 

Options look like a decent way to go when weighing in on VFC. The apparel stock's Schaeffer's Volatility Index (SVI) of 43% sits higher than 25% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations. In other words, the stock's near-term options are attractively priced at the moment.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners