Signet Jeweler's same-store sales saw a 2% year-over year drop in the fourth quarter
Signet Jewelers Ltd (NYSE:SIG) slashed its sales and earnings outlook for the fourth quarter, citing a dismal holiday shopping season. Same-store sales saw a 2% year-over year drop for the quarter, as consumers turned to more affordable gifts and opted for lab-grown diamonds.
SIG is down 18.6% to trade at $60.34 at last glance, trading at their lowest level since June and on track for its biggest single-day percentage drop since March 2020. The shares already carry a 36.8% year-over-year deficit, and are now trading below all short- and long-term moving averages.
Short sellers are firmly in control, with the 4.98 million shares sold short making up 11.9% of the stock's available float. It would take shorts nearly a week to buy back their bearish bets, at SIG's average pace of daily trading.
Bears are coming out of the woodwork today, with 3,573 puts across the tape so far, which is 19 times the volume typically seen at this point. The January 2025 60 put is the most popular contract, but new positions are being opened at the trailing 59 put in that same series.
Now looks like a great opportunity to bet on the security's next moves with options, as its Schaeffer's Volatility Index (SVI) of 47% sits in the 23rd percentile of annual readings. In other words, SIG currently sports attractively premiums -- a boon for buyers.