Zale Corp Attracts Bears…Again

Zale Corp (NASDAQ: ZLC), the troubled jewelry retailer, is receiving continued bearish sentiment today. One trader came in to buy the June $2.50 put on the offer 2,100 times for $0.40 a short while ago. This action pushed the put/call ratio in Zale Corp to 10.22x is norm.

Zale Corp continues to fight for its life and bankruptcy is just on the horizon if they cannot put together something soon. The fact of the matter is that bond holders are more or less unwilling to renegotiate the debt because they will be able to renegotiate land leases in bankruptcy, thus streamlining the new company’s costs.

The stock is trading below both the 200 and 50-day moving averages, which is a bearish sign.