The Options Market Isn't Too Worried About Retail Woes -- Maybe It Should Be
The ratio of puts to calls for the retail sector ETF has come in sharply, notes MKM Partners.
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Retail stocks have been thrashed over the past month, yet there's one corner of the market where investors are showing themselves somewhat unperturbed by the damage.
Options traders remain largely sanguine about the near-term prospects for American retailers. They've sent the ratio of bearish bets to bullish ones on the industry tumbling by half despite struggles at some high-profile companies, the perpetual threat from Amazon.com Inc. and heavy short interest in an exchange-traded sector fund.