Nordstrom Stock Shoots Higher After Beat-and-Raise

JWN's options volume is running at 28 times the intraday average

Deputy Editor
Mar 2, 2022 at 10:22 AM
facebook X logo linkedin

Nordstrom Inc (NYSE:JWN) stock is on track for its best day ever, up 31.5% to trade at $25.68 at last glance, after the retailer's better-than-expected fourth-quarter results and strong 2022 guidance. No fewer than five analysts lifted their price targets after the event, with three raising it to $30. 

Analysts have yet to toss JWN an upgrade however, as they are still hesitant on the stock in terms of its consistency for the full year. Cowen and Company stated that it looks for steadiness in off-price channel as performance has been mixed. There is plenty of room for a shift in sentiment -- which could provide tailwinds -- as 10 of the 11 brokerages in coverage carry a "hold" or worse rating. 

It's also worth noting that short interest represents 22.1% of the stock's available float. At JWN's average pace of trading, it would take over four days to buy back these bearish bets -- plenty of pent-up buying power. 

Today's pop has Nordstrom stock at its highest level since its late November post-earnings bear gap, and further distancing itself from its Feb. 24, 14-month low of $18.65. However, the stock's 140-day moving average appears to be swooping in as overhead pressure. Year-to-date, JWN is up 14.9%. 

Unsurprisingly, options traders are targeting the security at 28 times what's typically seen at this point, with 39,000 calls and 21,000 puts across the tape so far. The March 23 and 20 calls are the most popular, with new positions being bought to open at the weekly 3/4 30-strike call. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI