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Options Bears Circle Apparel Stock, Brush Off Analyst Upgrade

·1 min read

Canada Goose Holdings Inc (NYSE:GOOS) is seeing an influx of bearish options activity today, despite the apparel retailer earning an upgrade from Williams Trading to "hold" from "sell." So far, 12,000 puts have been exchanged -- 29 times the volume that is typically seen at this point. Most popular by far is the weekly 10/7 15-strike put, where new positions are being opened.

Although last seen up 0.6% to trade at $17.34, the $20 level rejected the shares just last week. The security is also sitting near its annual low of $16.65, and remains down 52.7% year-to-date. Plus, overhead pressure at the 160-day moving average -- or $24 level -- capped the security's mid-August rally.

GOOS 160 Day
GOOS 160 Day

While short sellers have been hitting the exits of late, they still rule the rooster. The 6.45 million shares sold short account for 12% of the equity's available float, or nearly seven days' worth of pent-up buying power.

Now looks like an affordable time to speculate on the security's next move with options. Canada Goose stock's Schaeffer's Volatility Index (SVI) of 57% sits higher than just 19% of readings in its annual range, suggesting these options players are pricing in relatively low volatility expectations at the moment.