4 Naughty & Nice Holiday Options Trades

Make holiday gains that don’t go straight to your waist

      View All  
4 Naughty & Nice Holiday Options Trades

The Naughty

These days, it’s tougher to identify retail losers than it is to pick winners, but there are still plenty of retailers that haven’t seen jolly old Saint Nick. One such company is perennially troubled Sears Holdings (NASDAQ:SHLD).

The company has been plagued by slow sales and stiff competition from rival retailers like Target (NYSE:TGT) and Dillard’s (NYSE:DDS). Younger consumers also widely see this as an old-school, unhip place to shop.

Despite the holiday rush at the malls, Sears is unlikely to see a spike in sales capable of sending the shares higher. Options players should look at the SHLD Jan 57.50 Puts as a profitable holiday present this season.

Another formerly fantastic retailer that’s not likely to see any holiday cheer this year is Gap Inc. (NYSE:GPS). The company’s Black Friday sales were disappointing, and total same-store sales for November came in 5% below last year’s number. In fact, Gap’s same-store sales have been on a descent for the last five months … a decline that includes sales at its lower-end Old Navy chain.

With all of the choices open to shoppers, it seems as though Gap is getting passed over. But options players shouldn’t pass on the GPS Jan 17.50 Puts, as it could stuff your stockings with some nice upside.

Check out the next page for the names on our “nice” list…


Article printed from InvestorPlace Media, http://investorplace.com/2011/12/naughty-and-nice-holiday-options-trades-shld-gps-amzn-xrt/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.