Option update: Macy's (M) and J.C. Penney (JCP) volatility suggests risk into holidays

Posted Nov 13th 2007 11:23AM by Paul Foster
Filed under: Penney (J.C.) (JCP), Options

Macy's (NYSE: M) is expected to report Q3 EPS of 8 cents on 11/14 according to Thomson First Call. M operates 850 stores in 45 states. M overall option implied volatility of 54 is above its 26-week average of 40 according to Track Data, suggesting larger risk.

J.C. Penney (NYSE: JCP) is expected to report 3Q EPS of $1.02 cents on November 15 according to Thomson First Call. JCP closed at $46.31. Alex Brown lowered its price target on JCP to $83 from $55 on November 12. JCP overall option implied volatility of 56 is above its 26-week average of 38 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: Alex Brown, AlexBrown, j.c. penney, J.c.Penney, jcp, m, macy's, options