Unusual Options Activity in Kohl's Corporation (KSS)
Today, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Kohl's Corporation (KSS), which opened at $47.19.
There were three orders each sized at 7,750 contracts a piece, representing approximately 1,550,000 shares.
These orders were: $57.5 strike call options at the ask and $67.5 strike call options at the bid both dated for November 19th, 2021; these orders, if entered together, would be a vertical call debit spread costing approximately $0.74 at the time of entry.
These orders come after reports revealing that Bank of America, who was formerly bullish on the retailer, with a $75 price target and a buy rating on the stock, has slashed its price target on Kohl's to $48, and downgraded the stock to underperform.
Yesterday, KSS had a high of 26,822 call volume, and today it has reached 22,681 again at the time of this writing, and its price has rallied to $48.10.
Unusual Options Activity in Southwest Airlines Co. (LUV)
Among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Southwest Airlines Co. , which opened today at $53.77.
There were 1,492 contracts bought at the ask on the $52.5 strike call option dated for November 19th, 2021, representing 149,200 shares.
These orders come after reports from the Motley Fool regarding investors’ continued excitement on airline stocks in spite of lowered guidance: ”If you're invested in any of these stocks [$UAL, $DAL, $SAVE, $JBLU, $LUV] in particular, I'd say Delta or Southwest, I would definitely sit tight.”
Yesterday, LUV’s price had reached a local bottom at $51.43, with calls rising to 13,453; today, LUV is at $54.54 and, as of this writing, calls are at 12,930, with a continuation of the trend.
Unusual Options Activity in Merck & Co., Inc. (MRK)
Finally, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Merck & Co., Inc. (MRK), which opened at $81.56.
There were 2,695 contracts bought at the ask on the $95 strike call option dated for January 21st, 2022, representing 269,500 shares.
Additionally, there were 2,184 contracts sold at the bid on the $72.5 strike put option dated for December 17th, 2021, representing an additional 218,400 shares.
These order comes after reports from before market open today that the company announced that its oral antiviral medication molnupiravir -- developed in conjunction with Ridgeback Biotherapeutics -- cut the risk of hospitalization for COVID-19 by half.
Yesterday, MRK’s price was $75.11, and today has climbed to $84.34, with calls rising to 215,244 from 61,953 yesterday; this increase in calls represents a 639% increase over MRK’s 30-day call volume average.