Macy's Stock Surges After Beat-and-Raise

Options volume is running at 10 times the intraday average amount

Deputy Editor
Nov 17, 2022 at 10:52 AM
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Macy's Inc (NYSE:M) stock is surging, up 8.1% at $21.30 at last glance. The retailer's third-quarter earnings of 52 cents per share beat analyst estimates of 19 cents, while revenue of 5.23 billion came in roughly in line with estimates. Macy's also raised its full-year forecast on strong demand for its high-end suits, gowns, and beauty products.

Fellow retailer Kohl's (KSS) announced earnings this morning as well, though the stock is slipping after its report. Jane Hali & Associates analyst Jessica Ramirez noted that "the Kohl's customer is being hit by inflation a lot more than Macy's" as consumers travel and return to offices. 

Macy's options volume is running at 10 times the intraday average this morning, with 33,000 calls and 22,000 puts exchanged in just the first hour of trading. The November 22 and 21.50 calls are the most popular, with new positions being opened at both. Both of these standard contracts will expire tomorrow, Nov. 19. 

Looking at the last 10 weeks in the options pits, puts have been picked up at a much more rapid pace than usual, despite calls winning out on an absolute basis. This is per M's 50-day put/call volume ratio of 0.90 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 91% of readings from the past year. 

Macy's stock staged an impressive rally this quarter, tacking on 36.8%, though the equity is still down 18% year-to-date. In recent weeks, the shares have been rallying from its Sep. 26 18-month low of $15.10, though familiar pressure at the $22 level is keeping a lid on gains. 

 

 

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