Kroger stock is nearing its annual lows today after earnings
Cincinnati-based Kroger Co (NYSE:KR) stock is 1.4% lower at $43.04 at last check, after the grocer's mixed third-quarter earnings report. While the company posted better-than-expected adjusted earnings of 95 cents per share, Kroger also trimmed its annual sales forecast, as near-term economic pressures and disinflation weigh on margins.
KR's normally quiet options pits are brimming with activity this morning, with 3,048 calls and 2,867 puts across the tape so far, volume that is five times the average intraday amount. Most popular is the weekly 12/1 43.50-strike call, followed by 44-strike call in the same series.
Kroger stock remains below its year-to-date breakeven level, while sporting an 11.8% year-over-year deficit. The shares are not far off their Nov. 17 annual low of $42.09, but $42 did serve as a bottom dating back to October 2022.
KR looks like a potential premium-selling candidate, per its Schaeffer's Volatility Scorecard (SVS). With a score of just 5 out of 100, the security has consistently realized lower volatility than its options have priced in.