Bears See Payless—Worth Less (PSS)

Shares of Collective Brands, Inc. PSS are higher on the session by 0.75%, currently trading at $16.15. The stock has been moving largely lower over the past six months, off of a recent high near $26.50. Shares bounced off of $12.50 recently and are now hovering around the 50-day moving average. Options traders are worried about another push lower in PSS. Though action has been primarily in small lots, overall put volume is now running at 3.16x the daily average with 93% of all puts traded being purchases on the offer. The majority of the volume is centered in January 2011 on the $17.50, $16.00, $15.00, and $14.00 strikes. Collective Brands, Inc. operates a hybrid business model that includes retail, wholesale, licensing, digital commerce and franchising businesses. The company operates its business in four segments: Payless Domestic, Payless International, PLG Wholesale and PLG Retail. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.