JC Penney Company (JCP) Option Bulls Can't Get Enough

Bullish betting has picked up on J C Penney Company Inc (JCP) after a price-target hike

Digital Content Group
Mar 31, 2015 at 11:28 AM
facebook X logo linkedin


J C Penney Company Inc (NYSE:JCP) gapped higher out of the gate, thanks to a price-target lift at Piper Jaffray to $14, representing a 69% premium to current levels -- and territory not charted since September 2013. The development hasn't been lost on option traders, as 15,027 calls have changed hands thus far, a figure higher than 95% of readings from the past year, and five times the expected intraday volume.

Between the weekly 4/2 and the April series, the 8-strike call is popular today. With JCP's 5.9% lead to trade at $8.29, it's possible some of the action here is profit-taking. Elsewhere, the January 2016 10-strike call has seen apparent buy-to-open action, as traders bet on the shares to climb atop the round-number $10 level by January expiration.

This is the second day in a row calls have been in demand in JCP's options pits. Now, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.73 ranks higher than 92% of all similar readings from the past year.

J C Penney Company Inc (NYSE:JCP) has been on a roll of late. The shares have added nearly 28% in 2015, and have surpassed their average 12-month price target of $8.15 with today's gains.

Daily chart JCP since December 2014
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI