Kohl's Stock Slipping Ahead of Earnings

Options traders are chiming in ahead of the event

Deputy Editor
Nov 17, 2021 at 3:18 PM
facebook X logo linkedin


Kohl's Corporation (NYSE:KSS) is continuing this week's flood of retail earnings, with its third-quarter report due out before the open tomorrow, Nov. 18. Analysts are expecting profits of 64 cents per share, and the options pits are pricing in a 13.1% post-earnings swing for KSS -- outpacing the average post-earnings move of 9.3% from the last two years. Looking back, the stock has only finished three of its last eight next-day sessions higher, including a 7.3% rise this past August, though the affects of Covid-19 on the retail sector should be factored into those numbers. 

KSS is moving lower ahead of the event, down 4.4% to trade at $55.73 at last glance. However, underlying support at the recently reclaimed 200-day moving average is looking to keep these losses in check. Longer term, the $60 level has kept a ceiling on two rally attempts since a post-earnings bear gap in May.

KSS Nov17

Analysts are leaning bearish on Kohl's stock, with five of the nine in coverage carrying a "hold" or worse rating, and four a "strong buy." Meanwhile, short interest makes up a healthy 11.8% of the security's available float, or five days' worth of pent-up buying power. 

Options traders, on the other hand, have been more bullish than usual. This is per KSS' 50-day call/put volume ratio of 2.48 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 91% of readings from the past year. This means long calls have picked up at a much faster-than-usual rate during the last 10 weeks. 

Today, however, options bears are picking up their momentum, though calls are still winning out on an absolute basis. So far, 17,000 calls and 15,000 puts have crossed the tape, with puts being picked up at five times what's typically seen at this point. The November 55 put is the most popular, with positions being bought to open there. This means plenty of options traders are expecting KSS to move lower by the contract's expiration at the end of this week. 

 

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI