Kirkland’s, Inc. stock trades under the ticker KIRK & has recently been showing strong technical strength.
KIRK stock closed at $11.80 on 10/13/20, after taking off from May 2020.
Their in-the-money call options are $10 calls (10/16 expiration), with $12.50 being the next higher level, requiring a 6% increase in price by Friday in order to finish in-the-money.
With an implied volatility of 128%, the $12.50 calls look more appealing to sell than to buy, whereas the $10 calls provide for some added cushion from market volatility.
The Delta of the KIRK $10 call option is 0.946, making it worth considering outright buying the shares for a trade instead.
KIRK Price: $11.80
10 Day Moving-Average: $9.38
50 Day Moving-Average: $8.21
200 Day Moving-Average: $3.20
For a hedge on KIRK stock or call options, their $12.50 puts are in-the-money, and look much more appealing than their $10 out-of-the-money puts
With the gap between the 10 Day & 50 Day Moving-Averages narrowing & getting closer to the price/share, when buying Kirkland’s, Inc. stock or calls, I would make sure to be mindful of having a smart hedge on the table as well.
*** I DO NOT OWN KIRK STOCK ***