EARN25

Options Traders Respond to Nordstrom's Earnings Report

The luxury retailer posted third-quarter results after yesterday's close

Deputy Editor
Nov 23, 2022 at 11:57 AM
facebook X logo linkedin


Nordstrom, Inc. (NYSE:JWN) stepped into the earnings confessional after the close yesterday, and options traders are taking note. The department store retailer posted third-quarter earnings of 20 cents per share and revenue of $3.55 billion, both of which beat Wall Street's estimates; however, the company cut its profit outlook for the fiscal year ending January due to slowing sales. 

In the options pits, 17,000 calls and 15,000 puts have crossed the tape so far today, for total volume that's four times the intraday average. New positions are being opened at the most popular contract, which is the 11/25 21-strike call. Not far behind is the 20-strike put in the same weekly series, both of which expire at the close on Friday.

Looking back further, options traders have favored puts. This is per JWN's Schaeffer's put/call open interest ratio (SOIR) of 1.35, which sits in the 85th percentile of its annual range.

Credit Suisse cut Nordstrom stock's price target to $20 from $21 after the earnings event. The consensus 12-month target price of $21 is a slim 2.2% discount to JWN's current perch, and 11 of the 14 covering brokerages rate the shares a "hold" or worse.

At last check, Nordstrom stock is 5.9% lower to trade at $21.30. The security's most recent rally fell short of the $23 region, while the descending 180-day moving average also capped additional gains. Longer term, JWN sports a 32.4% year-over-year deficit.

JWN Chart November 232022

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!