Kohl’s Corp. shares fell 2.1% to $17.92 as options traders positioned for volatility ahead of the retailer’s quarterly earnings release scheduled for August 26.
Options activity totaled 18,942 contracts, with put volume outpacing calls by more than four-to-one. Over 15,000 puts traded, with the heaviest concentration in near-term expiries. The August 28 $16, $15 and $14 strikes accounted for the largest flows, including 4,867 contracts on the $16 put against 1,179 open positions. Additional activity was observed in longer-dated puts such as April 2027 $10 and October 2026 $11 strikes.
Implied volatility for the stock rose to 70.6%, up 0.37 points, while the 90/110 skew increased to 1.21 points, indicating elevated demand for downside protection. The retailer’s shares have gained 35.3% over the past year but remain well below 2021 peaks, with a trailing P/E of 10.1x and a fair-value estimate of $16.80 according to InvestingPro.
Analysts expect a return to profitability following a surprise loss in the first quarter, though shrinking revenue and net income trends, along with aggressive back-to-school promotions, may pressure margins. The stock faces a key technical support level at $16, a break of which could accelerate selling pressure.
