TD Ameritrade Chief Strategist On Family Dollar Stores Ahead Of Earnings

Speaking to Benzinga, TD Ameritrade Chief Strategist JJ Kinahan commented on the volatility of Family Dollar Stores, Inc. FDO.

Kinahan noted that the stock's implied volatility was at the 80th percentile, however, the historical volatility was at the 2nd percentile.

"The stock has had a lot of gaps in the last year," Kinahan observed, and it showed increased volatility in early 2014 while trading in a "very tight range" during 2015.

Option buying was seen in the May $80 Calls, however, trading activity was relatively low from Kinahan's perspective.

Family Dollar is due to release Q2 earnings Wednesday morning and recently traded at $79.33, up 0.24 percent.

Kevin Riley and Brianna Valleskey contributed to this report.