Options Update: Retailers' volatility indicates continued movement

Posted Nov 12th 2008 8:45AM by Paul Foster
Filed under: Analyst Reports, Sears Holdings (SHLD), Kohl's Corp (KSS), Options

Sears Holding (NYSE: SHLD) closed at $50.22 Tuesday. SHLD Q3 results are expected in late November. Deutsche Bank has a Sell rating on SHLD. SHLD December call implied volatility is at 83, puts are at 127; above its 26-week average of 53 according to Track Data, suggesting larger price movement. SHLD puts are priced higher than calls because SHLD is difficult to borrow.

Dillards (NYSE: DDS) closed at $3.86 Tuesday. DDS is expected to report earnings soon. DDS December option implied volatility of 145 is above its 26-week average of 85 according to Track Data, indicating larger price movement.

Kohl's (NYSE: KSS) closed at $30.69 Tuesday. KSS is scheduled to report Q3 financial results on November 13. Deutsche Bank has a Buy rating on KSS. KSS overall option implied volatility of 84 is above its 26-week average of 64 according to Track Data, suggesting larger price movement.

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

Tags: dds, Dillards, inthenews, kss, option implied volatility, OptionImpliedVolatility, shld