J.C. Penney is up next for earnings releases, and markets are expecting a very dismal loss of 22 cents per share for the fourth quarter. Same-store sales for the quarter are expected to show declines of 30% (very weak). Long term charts show a lot of weakness, showing gains of 54% since the 2009 market lows. I say weakness because markets as a whole have shown gains of 118% during that time. Given all this weakness, there is some potential for a nice pop higher if earnings can surprise positively. Look to enter into hourly PUT options on Wednesday on a break below 20. Look to enter into hourly CALL options on a break above 21.50.
J.C. Penney's fourth-quarter earnings came out much worse than the already dismal expectations, with an adjusted loss per share of $1.95, where a loss of only $0.24 was the consensus analyst expectation. Sales were also lower at $3.88 billion, where markets were looking for sales of $4.08 billion. Same-store sales dropped as well, by a massive 32 percent for the fourth quarter. This is essentially a "look out below" scenario as it is looking increasingly unlikely that the company will remain viable much longer. Look to trade daily PUTS from tomorrow's open.