Kohl's Options Traders Betting On Stock Continuing To Moving Higher By Friday's Close

Kohl's Corporation KSS shares gained on Wednesday after the company reported better-than-expected first-quarter results and reaffirmed its FY23 outlook.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Kohl's was the second busiest retail name after Target on Wednesday. The stock traded at more than 5x average daily call volume during the Wednesday’s session.

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There were buyers of 3,448 of the May 26 weekly 21-calls at an average price of 80 cents per contract, Khouw mentioned.

The trader expects Kohl's stock moving higher by the end of the week.

Kohl's reported a first-quarter FY23 sales decline of 4% year-on-year to $3.57 billion, beating the consensus estimate of $3.34 billion. Q1 comparable sales decreased 4.3% versus last year.

KSS Price Action: Kohl's shares rose 7.5% to close at $20.72 on Wednesday, and added 0.1% in the after-hours trading session.

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