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Clearly, options traders are pricing in a big move for Ascena Retail Group shares, but what is the fundamental picture for the company? Currently, Ascena Retail Group is a Zacks Rank #4 (Sell) in the Retail - Apparel and Shoes industry that ranks in the Bottom 12% of our Zacks Industry Rank. Over the last 60 days, no analysts has increased their earnings estimates for the current quarter, while 4 analysts has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from loss of 3 cents per share to loss of 10 cents in that period. Given the way analysts feel about Ascena Retail Group right now, this huge implied volatility could mean theres a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected. Looking to Trade Options? Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the AMZN earnings report completely free.

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