52-Week Low Alert: Trading today’s movement in KOHL’S $KSS

Quantchabot has detected a new Bear Call Spread trade opportunity for KOHL’S (KSS) for the 28-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KSS was recently trading at $12.91 and has an implied volatility of 46.37% for this period. Based on an analysis of the options available for KSS expiring on 28-Feb-2025, there is a 34.24% likelihood that the underlying will close within the analyzed range of $11.45-$12.95 at expiration. In this scenario, the average linear return for the trade would be 73.64%.

52 week low: KOHL’S recently reached a new 52-week low at $12.61. KSS had traded in the range $12.62-$29.60 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if KSS maintains its current direction and does not revert back to pricing on the bullish side of $12.91 on 28-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if KOHL’S closes at or below $12.97 on 28-Feb-2025. Based on our risk-neutral analysis, there is a 50.50% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.


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