JC Penney (JCP), which fell to 52-week lows earlier this week after Micheal Francis was ousted from his post at the company is off 37 cents to $22.35. Recent options trades seem to reflect concerns that the volatility will continue, as a Nov 17 – 21 (2X1) put ratio spread was apparently bought on the retailer for 38 cents, 25000X to open, on PHLX. If so, the position will offer a max payout if JCP falls to $17 (~23.9 percent) through the November expiration. Shares are already down almost 50 pecent since mid-February.
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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.