UpdateSept19th,2012at2:50pm?

JCPsiscurrentlyhostingtheirInvestorDayinDallas,TXandtheirCEOwillbetakingquestionsoncallscheduledfor2:45pm?

AsIsaidinyesterdayspreview(below),theeventisbeingtreatedlikeandearningseventbytheoptionsmarket,althoughtheimpliedmovemoveisatadlowertodayatjustabove6%?

Thestockhasalreadymovedina4%rangeonthedayandnowsitsunchangedasthecallapproaches。

WhatisapparentisthatthecompanyismakingsomeveryboldmovestochangetheshoppingexperienceatJCP,andthenewCEOhasalotridingonitworking,andsoon?

Investors/tradersarelininguponbothsidesofthisone?

TodaysomeonejustboughttheJCPNov27/2212PutSpreadfor。

82,possiblyasahedgeagainstlongstock?

PossibleScenarios:

AsfortodayIwouldassumethatthenewstoreformatisgoingtobeperceivedverywellbyanalystsandwillbereflectedintheir?

qualitative?

assessments?

oftheday?

Froma?

quantitative?

standpointthoughIassumethatmanyanalystsmaystruggletoseetheneartermbenefitsasthecompanystrugglestodoawaywithexcesslegacyinventoryandreconditionconsumerstosuchanewexperience。

Iseeacouplepossiblescenariostoday,ifthestoreformatispositivelyreceivedandtheCEOsayswhathehastosaythestockcouldcertainlymovehigherandattempttofillintheearningsgapfromMay。

Thestock?

currently?

hasabout40%shortinterest,soitwonttakemuchtogetitgoinghigher。

TheotherscenarioIseeisthatthestoreformatiswellreceived,butthecompanydoesnotspeaktoanimprovingback-to-schoolenvironment,andinvestorswithrecentgainspealoutofthestockandwaitforthecompanytoreporttheirQ3inearlyNov?

Novtomeisthemainevent。

Octvolisalsovery?

elevated?

fornoreasonotherthanit?

incorporates?

todaysevent?

IwanttoSellOctasIbelieveitwillcomeinaftertodayseventandBuyNovasIwanttoownitforitsearningsinearlyNov。

Ithinkregardlessoftodayscommentary,Novearningslikelyto?

disappoint?

givenstocksrecentrun。

TRADE:JCP($29。

50)BoughttheOct/Nov26PutCalendarfor。

70

-Sold1Oct26Putat。

50

-Bought1Nov26Putfor1。

20

Break-EvenonOctExpiration:

Maxriskis。

70,Iwantstocktoclose26orhigherandhaveOct26PutexpireworthlessandthenlooktospreadNov26putpriortoQ3earnings。

ConvictionLevel:Ilikethesetupwiththeterm?

structure,andwanttoownputsinNov,butwithshortinterestsohigh,squeezeverypossible,thisisa1/3positionformeinfrontoftheevent。