Torrid Holdings Inc (CURV) Options

As I guessed, we had a couple weak days followed by some much better days. Today has been incredible. Right now we are seeing $7.83 but the 30 minute chart is showing us well above the BB. I closed my position slowly while I wait for the price to get back into the BB and then touch the 8ma on the 30 minute chart. Maybe around $7.60?

Glad I found this stock. BTW, look for more short covering to have occurred soon. Today alone was 3 to 1 buys. Soon enough, this will likely be just another stock. Until then, I am looking for mid $8s minimum.

Still 27 days to cover. I am expecting a decent covering from the last 2 weeks. Maybe 350k shares covered? WAG only. That would put us at about 11-12% of float (float is 10.9mil). At increased daily volume, that could bring the days to cover to around 18 days. That would relieve some of the short squeeze, but there is still a lot of upside here.

Two things at play right now.
1. Potential increased short - as the stock was very overbought recently - over the last few months even... shorters have a potential opportunity to bring the price down below the 8 day MA. That would relieve a lot of pressure. I am assuming the price will go down for a few days and hopefully bounce off the 8 dma, but if they can push it lower, the next support is around $6.43.
2. Continued short squeeze - We are sitting at well above $7.20. We broke through the last resistance before the 52 week high of $7.80. The bulls will likely fight for continued squeeze - though they may allow a bit of consolidation this week to strengthen the chart.

My opinion is that we will see $6.70-6.80 over the next week. Then the bulls will take over and ride this up to see a new 52 week high. At that point, the shorts will be encouraged to cover faster.

My last post - 10 days ago - the price was $6.65. Hung out in South Carolina without a computer - was great!
Today's price rose to a high of $7.62 before closing at $7.47. Been a great run so far.

Now... The weekly and monthly chart look strong still, but the daily chart shows a bit of weakness. Might be a good time to consider being out for a few days. An indecisive red candle (still well above yesterday's close) closed completely outside of the the bollinger bands. Look for a retreat to the 8 day moving average. Then I personally will move back in. Exciting times ahead.

Friday was another volatile day with a finish up .19 or 2.86%. Watching the bollingers on this stock can pay off much more than holding - at least for a while. Shorts covered 200k shares with the last short report. That brings us to 27 days to cover. Still a lot of play and a potential nice payday for another month or two. Sitting at the top of the BB's from 1 minute to 15. The 30min chart has some room to move up. Weekly and monthly are at the top as well.

Weekly chart closed it's latest candle in the green again - that is 8 of the last 9 green with last week having consolidation - as I expected - see a couple posts ago.

Hot to play this? Will likely go above the bb's early tomorrow. Then a little consolidation. The 30 min chart is still strong, so look for a move back up - even by 10am. I expect a good day Monday, but by the end of the week things will likely tighten up - still green candle, but likely won't close the week as high as early during the week. One of these days we will likely see $7.85ish. I expect it to happen after closing the 30 min (completed candle) above $7.20. If the volume drops on the way up, take some off the table. If volume increases, no need to sell even if well above the bb. If it happens according to plan, I will take some off the table at around $7.85 - volume and bb will be my strongest indicators. Should there still be considerable short, I will wait for the dip and then get back in with 2 feet.

Interesting day today. Jumped to $7.80 for a few minutes and then got beat down hard from there. We saw a low of $5.39 before it made it's recovery. A rise of a buck twenty. A drop of two and a half bucks. Finally finishing up with a buck and a quarter rise to finish with a small gain for the day. This movement, I believe, was the results of shorts in panic mode followed by a forced increase in their short position instead of simply covering. Keep in mind that the stock is short 18% of it's float. That is pretty big.

I missed the open this morning so I didn't get to sell any high $7's, but after it broke below the 200ma, I sold. At low $5's, it was a no brainer to buy back. Below the bollinger bands with no reason for the dump. Stock finished at $6.65 - a 5 cent gain for the day. Overall a really good day, but admittedly not what I expected.

We didn't see $7.20 yesterday, but we saw it today after hours. The stock had a low of a buck 69 in October and has moved up pretty steadily since then. Crossing a strong resistance level today - and the good earnings report - means the short squeeze is about to get tighter. Will we see $7.20 today? If so, we could see a whole lot of panic and a nice spike tomorrow. Can't wait 27 days of short cover now that almost 2 mil shares have been bought back. Panic in the streets? Can't wait to see how the week finishes. Then the month.

Was a gamble, but it looks like it paid off in spades. Earning report out and it is a decent one:

Torrid Holdings CURV came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 71.43%. A quarter ago, it was expected that this women's apparel retailer would post a loss of $0.08 per share when it actually produced a loss of $0.04, delivering a surprise of 50%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Torrid Holdings, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $279.77 million for the quarter ended April 2024, missing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $293.85 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Torrid Holdings shares have added about 15.4% since the beginning of the year versus the S&P 500's gain of 12.7%.

What's Next for Torrid Holdings?

While Torrid Holdings has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Torrid Holdings: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $286.58 million in revenues for the coming quarter and $0.17 on $1.14 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Retail-Wholesale sector, Kura Sushi KRUS, has yet to report results for the quarter ended May 2024.

This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -6.3%. The consensus EPS estimate for the quarter has been revised 5.6% higher over the last 30 days to the current level.

Kura Sushi's revenues are expected to be $65.83 million, up 33.7% from the year-ago quarter.

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Near the end of the last week we got the consolidation that was expected. Today we are up .48 which is 7.4% up by 1pm central. Still looking at 27.5 days for shorts to cover. Tomorrow is the earnings announcement. Will we see $7.20 today? If so, we could see a whole lot of panic and a nice spike tomorrow. Can't wait
From June 3rd: Here is the weekly chart. Got some more upward movement this week, but keep an eye out on the bollinger bands. Riding the top and could get outside - potential for consolidation for a week or two. Market is betting on a continuation of short squeeze, but June 12 is reporting date.

Here is the weekly chart. Got some more upward movement this week, but keep an eye out on the bollinger bands. Riding the top and could get outside - potential for consolidation for a week or two. Market is betting on a continuation of short squeeze, but June 12 is reporting date. If they surprise good news, this could be a very big short squeeze. Think bigger than AMC and even GMC. Even if they don't surprise, we could still see a continuation of upward movement. If they fail big, the shorts may get a couple weeks to buy back, but we are looking at 27.5 days to cover. That is a big opportunity.

slow steady short covering on the daily chart. I know nothing about retail, but I know a nice chart.

CURV is a plus size fashion retailer. Owned by the same people as Hot Topic. What makes this special right now? The stock is short 27.5 days out. That makes this a short squeeze opportunity.