Options Target Falling Retail Stock After Earnings

Kohl’s reported mixed fourth-quarter results

Options traders are eyeing Kohl’s Corp (NYSE:KSS) stock’s post-earnings slide today, after the retailer’s mixed fourth-quarter report. The company posted stronger-than-expected earnings, but disappointing revenue and a downbeat 2024 forecast. At last glance, KSS was off 6% at $25.55. 

So far, 13,000 calls and 17,000 puts have exchanged hands in the options pits, which is already double KSS’ average daily options volume. The March 26 put is the most popular, followed by the March 30 call. 

On the charts, KSS is down 10.7% year to date after a volatile start to the year. On track for its eighth daily loss in the past 10 days, the stock’s 100-day moving average appears to be providing some support for today’s pullback. 

KSS March12

It’s worth noting that the stock has plenty of short squeeze potential. Short interest represents 27.3% of the stock’s available float, and would take nearly six days to cover, at Kohl’s stock’s average pace of trading. 

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