Battered U.S. retailers’ shares draw bottom-pickers in option market

Some options players are betting that this year’s selloff in the shares of retailers may be overdone, at least for the near term.

More broadly, the S&P 500 Retailing index is down about 25% for the year, outpacing the 14% decline in the benchmark S&P 500 as consumers shift their spending amid soaring inflation. A $1.8 million sale of July 145 Target puts on May 31 is one example of traders betting on relief for retailers. A put seller stands to gain if the stock ceases to fall or rebounds.

“I would say investors are trying to pick a bottom ever since the big sell off mid-May,” said Chris Murphy, co-head of derivative strategy at Susquehanna, adding that he has noted similar trades in the options of Walmart, Gap and Target.Target, Walmart and Abercrombie & Fitch are attractive put-selling names for investors who expect the stocks’ recent underperformance to abate, Goldman Sachs said in a note on Monday.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Banks, commodity stocks lift European shares as markets await ECB meetThe ECB on Thursday is expected to confirm an end to bond-buying this month and investors will be looking for clues on monetary policy
Source: globeandmail - 🏆 5. / 92 Read more »

$12 million earmarked for BC Association of Farmers’ Market’s coupon program | Globalnews.caThe BC Farmers’ Market Coupon Program provides coupons for fresh, locally grown food at B.C. farmers’ markets.
Source: GlobalNational - 🏆 81. / 51 Read more »