by Houghton and Atkeson 09/05/08
Saks Inc. (SKS) caters to the high-end shopper. The stock has been virtually cut in half this year, so clearly high-end shoppers are feeling the pinch.
What is interesting about this situation is that option investors are placing sizable bets today that sales at Saks will continue to decline.
More Trading Alerts
We are seeing 10 times the normal volume of SKS options trading primarily in a SKS Feb 10-7.50 (SKSNB/SKSNU) bearish put spread.
With the stock trading at about $11 per share, these option investors will not make money until the stock falls well below $10 per share, given the way the put spread was constructed this morning.
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Dawn Pennington
Read This Before You Buy Another Stock
A savvy stock position can start with a single options trade.
This technique can help you breathe a sigh of relief as it aims to relieve a 'choking' portfolio.
If you are familiar with buying calls and puts, we'll show you how to buy them even cheaper.
Anatomy of a Stock Option Ticker
Option tickers may look like a bowl of alphabet soup to you, but each letter means something.
You don't have to short stock to put a bearish bet on the table -- but the path to profits comes with different levels of risk.



