tradeMONSTER: Trade free for 90 days

Options Trading News

April 9, 2012  Mon 9:27 AM CT

KSS: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Kohl's continue to fall with the market selloff this morning, and put trading tops the option action.

KSS is down 1.05 percent today at $49.79 and is now in the middle of its 2012 range. The department-store operator was above $52 on Thursday, which represents resistance going back to November.
 
More than 3,300 May 47 puts have traded against open interest of 725 contracts, according to optionMONSTER's systems. The puts changed hands on several exchanges for $0.75, which appeared to be the ask price on a tight bid/ask spread.

However, the stock was volatile this morning, and the price action of the options makes it difficult to read the strategy behind them. We also don't see any corresponding action in the underlying shares.

If the puts were bought, they could have been intended either as an outright bearish bet or as a hedge on an existing long position. In either case, we would expect the volatility and price of the puts to increase. So this could also be put selling, as a bet that the stock won't continue to fall in the near term. (See our Education section)
Share this article with your friends


Related Stories

KSS

What's behind Kohl's put buying

December 9, 2014

The department-store operator climbed after reporting quarterly results on Nov. 13, but shares have been declining since.

KSS

What put buying means for Kohl's

November 18, 2014

The department-store operator gapped down in late October after lowering its full-year outlook, and one trader is positioning for a possible drop in coming weeks.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER