Looking To Buy Shares Of Macy's Or Kohl's? Listen To This Pro First

Shares of rival department store Kohl's Corporation KSS are similarly lower by around 17 percent since the start of the year and around 18 percent over the past year.

What The Pros Are Saying

CNBC's "Trading Nation" noted that although it is still early in the year, Macy's and Kohl's hold the title of the worst performing stocks in the S&P 500 sector.

So, is now a time for contrarian investors to buy?

Dennis Davitt, managing director at Harvest Volatility Management, started off the conversation by noting that option investors aren't buying calls on either department store. In fact, he is seeing investors positioning themselves for further downside by buying put options, which provide protection from further declines in the stock.

"Macy's is like a mall within the mall, so they don't really stand out product-wise. Kohl's is a lower price point. So, we're seeing more activity in Macy's to the downside, people buying protection," the options pro added.

Davitt recommended buying Kohl's over Macy's if he had to pick between the two since Kohl's lower price point offers consumers a differentiated product versus the "mall within the mall" department store.