Speculators Stay Positive on Michael Kors Holdings Limited (KORS)

Options traders may already be preparing for Michael Kors Holdings Ltd's (KORS) earnings report

Digital Content Group
Jan 14, 2015 at 3:31 PM
facebook twitter linkedin


This morning Michael Kors Holdings Ltd (NYSE:KORS) gapped down to $65.10 -- its lowest mark since July 2013. At last check, KORS was still off 3.2% at $66.22. Even with today's drop, though, options bulls are targeting the stock's February series, ahead of the company's earnings report, tentatively scheduled for early next month.

Digging deeper, calls are trading at four times normal intraday levels. Most popular by a large margin is the February 70 strike, with data giving the impression of mostly buy-to-open activity. (A small portion of this volume can be attributed to a bull spread that was initiated today with the February 75-strike call).

These traders may be looking for KORS' fiscal third-quarter earnings report to boost the stock past the $70 level before the contracts expire at the close on Friday, Feb. 20. If history is any indicator, these option bulls may be in luck, as the security has averaged a 3.2% gain in the session following its last eight trips to the confessional -- including a 17.3% pop last February.

From a technical perspective, Michael Kors Holdings Ltd (NYSE:KORS) has struggled of late, underperforming the broader S&P 500 Index (SPX) by nearly 11 percentage points in the last three months. What's more, the stock could now be facing resistance from its 10-day moving average, which thwarted a recent rebound attempt.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners