Kohl's Stock Pops After Upbeat Earnings Report

Kohl's expects increased sales as shoppers return to stores

Deputy Editor
Aug 19, 2021 at 10:14 AM
facebook twitter linkedin


Kohl's Corporation (NYSE:KSS) is up 6.8% to trade at $55.40 at last check, after an upbeat quarterly report. The department store name reported second-quarter earnings of $2.48 per share -- much higher than analyst estimates of $1.21 per share -- as well as better-than-expected revenue. Plus, the company raised its full-year guidance as more U.S. shoppers return to stores in person. 

On the charts, the $57 level has kept a tight lid on breakouts since late May. However, long-term support at the ascending 200-day moving average swooped in to catch the stock's recent five-month lows. Year-to-date, the equity is up 32.8%. 

Analysts are split on Kohl's stock, with five of the nine in coverage carrying a "strong buy" rating, and four a "hold" or worse. Meanwhile, a short squeeze could provide tailwinds. Short interest represents 9.2% of the stock's available float, or four days' worth of pent-up buying power. 

A shift in the options pits could push KSS higher as well. The security's 50-day put/call volume ratio of 1.29 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 96% of readings from the past year, indicating a much stronger-than-usual penchant for long puts of late. 

Today, the options pits are seeing a flurry of activity straight out of the gate. Already, 9,063 calls and 4,533 puts have crossed the tape, which is five times what's typically seen at this point. Most popular is the weekly 8/20 54.50-strike call, followed by the 55-strike call from the same series.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1