Sears Holdings (SHLD) is up $4.46 to $74.48 and the best gainer in the NASDAQ 100 on 3.5X the average daily options volume. No news on the ticker. It has high short interest. Yesterday, the retailer announced plans to launch on online service that allows Kmart and Sears customers to download entertainment online. The strength is perhaps a delayed reaction to the news, and fueled by short-covering. Meanwhile, in options action, 9,850 calls and 5,400 puts traded. Jan 75, 80 and 85 calls are the most actives, then followed by Jan 67.5 and 72.5 puts. Implied volatility is up 18 percent to 46. Note that peer BJ is also seeing relative strength Wednesday.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.