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2 Stocks Attracting Unusual Options Activity

J.P. Morgan Securities lowered KSS' price target to $19

Digital Content Manager
Aug 20, 2024 at 2:27 PM
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Kohls Corp (NYSE:KSS) and Redfin Corp (NASDAQ:RDFNare both seeing unusual options activity today. With both stocks moving in different directions at last glance, let's dive deeper into what's driving this price activity and drawing options traders to the table.

KSS is down 0.6% to trade at $19.82 at last glance, after J.P. Morgan Securities lowered its price target to $19 from $20. The retail stock now sports a 30.4% year-to-date deficit, and has struggled with a ceiling at the $20.50 level for most of August, despite a bouncing off this year's lows.

Drilling down to today's options activity, 38,000 puts have crossed the tape so far -- eight times the intraday average volume -- compared to 6,284 calls. Most active is the weekly 8/23 20-strike put, where new positions are being opened.

Meanwhile, RDFN is up 3.5% to trade at $9.07 at last check, following yesterday's home sales data and a new rule on how real estate agents get paid goes into effect. The security earlier surged to its highest level since January, and are building on yesterday's 17.3% pop -- its biggest since November. The shares still carry a 12.6% year-to-date deficit, however.

Overall options volume is running at four times the intraday average volume, with 28,000 calls and 14,000 puts exchanged so far today. New positions are being bought to open at the most popular contract, which is the weekly 8/30 9-strike put.
 

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