Sears seems to be doing a better job at managing their inventory and halting the decline in same store sales. These are definitely positive trends but it doesn’t change my agnostic outlook towards the viability of their retail operations. I think Sears is an asset play and the key thing for investors is to understand that the liquidation process is underway. After selling all my clients Sears stock when it got in the low 80’s, we are choosing to play Sears through the bonds, and through a few select sold puts to take advantage of the high implied volatility in the options.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.