Revisiting the retail sector, we have a situation where we are either going to break away to new highs or pullback from this level. We will not go sideways.
The following retailers are showing low implied volatility these days versus one year historical measures. As a minimum, they would make good candidates for a straddle.
The "OI p/c" values I calculated using the total open interest for the NTM options shown in the link for the options chain. It shows Feb's tonight, but that will probably disappear tomorrow. Anyway, as you can see from the p/c numbers, not much bearishness here -g.
BBBY
OI p/c Feb: .40
OI p/c Mar: .29
OI p/c May: .27
Weekly chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com
BBY
Feb 1.43, Mar .58, Jun .54
Chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com
COST
Feb .90, Mar .94, Apr .44
Chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com
SPLS
Feb .43, Mar .71, Jun .75
(Nice week last week.)
Chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com
TGT
Feb .82, Mar .46, Apr .79
(Geeze, looking at the chart I think these guys must be retailing "the secret to making love stay." -g)
Chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com
WMT
Feb .75, Mar .53, Jun .57
Chart: stockcharts.com[m,a]waclyyay[pb50!b200][vc60][iUb14]&pref=G
NTM Chain: pcquote.com |
