There’s no sector I hate trading more than the Retail sector. The intraday charts are filled with whipsaw price action and the options chains are predominantly illiquid. Ironically, I’m infatuated with Michael Kors simply because if I see a woman rocking that tasteless copper-tone/silver watch, or stuffing make-up in an MK clutch, or even pulling out MK flats from the overnight bag, I turn the other way and run.
Despite my seemingly misguided pettiness towards Michael Kors and the women who choose to don this brand, there are some traders out there betting that shares of Michael Kors are headed back towards recent lows.
These were the notable put sweepers on KORS today, most tagging the $45 strike for August and September totaling just over $1 mm in long premium. Earnings are scheduled for August 4th, so these bets have ample time, even after the earnings reaction, to see some selling come into this name.
CNBC recently promoted an upgrade on Coach — one of the better performing luxury brands — after a supposed brand transformation resulted in increases sales.
This raises the question: can Michael Kors transform it’s brand into something other than synthetic luxury for basic b$tches?
Short it… Unless of course you’re a man that wears MK watches.
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