JC Penney (JCP), which was pounded for a 20 percent loss Wednesday and lost another 3 percent yesterday, is up 36 cents to $26.30 and one player opens a bullish longer-term options position on the retailer today — selling 5,000 Jan14 23 puts at $4.55 to buy 10,000 Jan14 30 – 37 call spreads for $2.15. 25 cents was collected on the three-way and seems to reflect confidence that shares will have recovered the two-day post-earnings slide by January 2014.
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.