Shares earlier gapped to their lowest level since October
Kohl’s Corp (NYSE:KSS) announced a surprise loss and revenue miss for the first quarter. The retailer also cut its annual sales forecast due to weaker demand, despite discounts and brand variety.
Kohl’s stock was last seen down 26.4% at $20.08, trading at its lowest level since October as it paces for its worst single-day percentage drop on record. The shares are down more than 28% for 2024, and are trading below recent support stemming from the 20-day moving average.
Short sellers are already firmly in control. The 36.67 million shares sold short account for 33.6% of the stock’s available float, or more than six days’ worth of pent-up buying power.
In the options pits, 17,000 puts and 11,000 calls have been traded so far — eight times the volume that’s typically seen at this point. The weekly 5/31 18.50-strike put is by far the most popular contract, with positions currently being bought to open there.
This points to a shift in the options pits. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Kohl’s stock’s 50-day call/put volume ratio of 1.34 stands higher than 99% of readings from the past 12 months, meaning options traders have favored long calls.