Sears Holdings (SHLD) is rallying and options volume is 3.5X the average daily. 7,590 calls and 7,030 puts traded on the retailer. The top trades are part of Jun 70 – Jul 75 put spread, which traded at $1.50, 1928X. The spread appears to be rolling of a position out one month and to OTM from ITM puts. June 70, 72.5 and 75 calls are also actively traded. Implied volatility is up 12 percent to 36. Shares are rallying $3.59 to $71.94 (best NASDAQ 100 gainer), but with no headlines to explain the relative strength and increased options activity in Sears today.
About the Author (Author Profile)
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.