A huge number of puts were bought on JWN (19.26) this morning. Look at the chart? Doesn't it look like it is rolling over?
So what do you do?
I think you buy it! I think they close the stock at the 20 strike Friday, and then you get a lift in this number, helped along with the market.
I think the worry in credit cards, has affected JWN, as they have $2 billion in credit card debt, with about $600 million private label, but we knew this news already.
So it should be in the current stock price, and the put purchases are for show.
After all, Goldman already has it as a conviction sell, and it has been downgraded already by more than a few firms. So isn't this news already factored in?
But what if they have another $100 million in losses in credit? Didn't JWN already say they will be reigning expenses in by $200 million?
And they're not spending money on building new stores!
I just don't buy the advertising of the puts on the screen!