Option update 11-14-07: At two-year high, Gap (GPS) volatility up ahead of earnings

Posted Nov 14th 2007 8:53AM by Paul Foster
Filed under: Earnings Reports, Gap Inc (GPS), Options

Gap Stores (NYSE: GPS) is expected to report EPS on November 21. GPS December option implied volatility of 41 is above its 26-week average of 32 according to Track Data, suggesting larger price risk.

Williams-Sonoma (NYSE: WSM), a home-furnishings retailer, is expected to report Q3 EPS of 24 cents on November 15. RBCM says, "Macros very difficult; too soon for longs, but scarcity value could increase." WSM November 30 straddle is priced at $2.80. WSM December option implied volatility of 55 is above its 26-week average of 38 according to Track Data, suggesting larger price fluctuations.

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

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