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Abercrombie & Fitch also lowered its full-year sales and margin forecasts
Abercrombie & Fitch Co. (NYSE:ANF) is down 2.4% to trade at $18.20 at last check, after the apparel retailer reported surprise second-quarter losses of 30 cents per share and a revenue miss. The company also lowered its full-year sales and margin forecasts due to high inflation.
The equity's usually quiet options pits are running red-hot today. So far, 2,472 calls and 2,126 puts have crossed the tape, which is five times what's typically seen at this point. Most popular is the 8/26 17-strike call, where positions are currently being opened, followed by the October 19 put.
Short-term options traders have been particularly bearish towards Abercrombie & Fitch stock. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.71, which ranks higher than 95% of readings from the past year.
Analysts are yet to chime in on today's results, but were already skeptical, with five of eight in coverage calling the stock a tepid "hold" or worse. Plus, the 7.73 million shares sold short account for 15.7% of the stock's available float, or nearly four days' worth of pent-up buying power.
It's also worth noting ANF's Schaeffer's Volatility Scorecard (SVS) sits at 81 out of 100, suggesting the security has usually outperformed these volatility expectations.
Abercrombie & Fitch stock is today trading at its lowest level since July, breaching recent support from the 40-day moving average. Shares are also eyeing their fifth-straight loss, and have racked up a 49.7% deficit so far in 2022.