NEW BEARISH Plays

Kohl's Corp. - KSS - close: 49.84 change: -0.25

Stop Loss: 50.60
Target(s): 45.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
KSS, a retail stock, has been underperforming the market the last several weeks. Shares spent the first part of December struggling under resistance at its 200-dma. Now the oversold bounce that began two weeks ago is starting to roll over under resistance at the $50.00 mark.

The path of least resistance over the intermediate time frame seems to be down. I am suggesting a trigger to open bearish positions at $49.60. We'll aim for a drop to $45.50. FYI: The Point & Figure chart for KSS is bearish with a $41.00 target.

Trigger @ 49.60

Suggested Position: short KSS stock @ 49.60

- or -

buy the 2012Jan $50 PUT (KSS1221M50) ask $1.45

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 4.4 million
Listed on December 29, 2011