American Eagle Outfitters Inc (NYSE:AEO) has been engulfed in controversy since releasing its new denim campaign with actress Sydney Sweeney, which ignited a retail trading frenzy and volatility. The equity is in focus today after President Donald Trump showed support for the brand and Sweeney amid online backlash, with retail sector peers Abercrombie & Fitch Co (NYSE:ANF) and Dick's Sporting Goods Inc (NYSE:DKS) enjoying tailwinds.
AEO is up 19.9% to trade at $12.88 at last check, on track to snap a four-day losing streak with its biggest single-day percentage gain since April 2020. The shares are now bouncing off familiar support at the $10 level to trade at their highest level since mid-May, but still carry a 23.1% year-to-date deficit. There's loads of pessimism left to unwind, with 11.1% of the stock's available float sold short.
ANF was last seen up 6% to trade at $96.51, but has shed 30.1% over the past nine months. The $100 region rejected a rally last week, with the shares now stuck consolidating below this level. The equity is also a short squeeze candidate, with 14.2% of its float sold short.
DKS is up 0.4% to trade at $207.49 at last glance, also looking to snap a four-day losing streak after last week's rejection at $220. The specialty retail stock remains down 9.3% in 2025. As far as short interest goes, 9.1% of DKS's float is sold short.
American Eagle Outfitters stock is the only one among those retailers seeing unusual options activity today. So far, 123,000 calls and 31,000 puts have already crossed the tape, which 9 times the volume typically seen at this point. The most active contract is the weekly 8/8 14-strike call, where positions are being opened.
