Kohl's Stock Pops After Upbeat Earnings Report

Kohl's Corporation (NYSE:KSS) is up 6.8% to trade at $55.40 at last check, after an upbeat quarterly report. The department store name reported second-quarter earnings of $2.48 per share -- much higher than analyst estimates of $1.21 per share -- as well as better-than-expected revenue. Plus, the company raised its full-year guidance as more U.S. shoppers return to stores in person. 

On the charts, the $57 level has kept a tight lid on breakouts since late May. However, long-term support at the ascending 200-day moving average swooped in to catch the stock's recent five-month lows. Year-to-date, the equity is up 32.8%. 

Analysts are split on Kohl's stock, with five of the nine in coverage carrying a "strong buy" rating, and four a "hold" or worse. Meanwhile, a short squeeze could provide tailwinds. Short interest represents 9.2% of the stock's available float, or four days' worth of pent-up buying power. 

A shift in the options pits could push KSS higher as well. The security's 50-day put/call volume ratio of 1.29 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 96% of readings from the past year, indicating a much stronger-than-usual penchant for long puts of late. 

Today, the options pits are seeing a flurry of activity straight out of the gate. Already, 9,063 calls and 4,533 puts have crossed the tape, which is five times what's typically seen at this point. Most popular is the weekly 8/20 54.50-strike call, followed by the 55-strike call from the same series.