Canada Goose Stock Gets Cooked After Double Downgrade

The analyst worried that a warmer start to the winter would hurt sales

Deputy Editor
Nov 25, 2020 at 10:25 AM
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The shares of Canada Goose Holdings Inc (NYSE:GOOS) are struggling, following a double downgrade from BTIG to "sell" from "buy." The analyst cites a potentially difficult holiday season, with a warmer start to the winter deterring shoppers from buying the company's down coats and other cold-weather items. At last check GOOS is down 8.4% at $35.39. 

This comes one day after Canada Goose stock surged toward a fresh annual high of $39.23 -- piggybacking off a bull note from TD Securities. Prior to this, the security had  been consolidating just below the $36 level, which is, once again, acting as a ceiling on the charts. GOOS is struggling just below its year-over-year breakeven, though it sports a six-month gain of 68.4%.

Options bears are likely cheering today's drop, since in the options pits, puts are king. This is per GOOS' 10-day put/call volume ratio of 1.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past year, indicating a healthier-than-usual appetite for  long puts of late. 

This pessimism is carrying over into today's trading. Within the first hour, 902 calls and 1,649 puts have exchanged hands -- nine times the intraday average. The weekly 11/27 38.50-strike  put is the most popular, followed by the weekly 12/4 39.50-strike put. 

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