Levi Strauss Stock Falls as Profit Forecast Weighs

Levi Strauss & Co (NYSE:LEVI) stock is sharply lower today, down 10% at $22.07 at last glance. The shares are brushing off strong third-quarter results as the retailer's disappointing annual profit forecast weighs. Still, no fewer than three analysts lifted their price targets, including J.P. Morgan to $33 from $23, with the firm also maintaining its "overweight" rating. 

Today's drop has Levi Strauss stock moving away from its recent Oct. 3 three-year high of $24.82. Earlier as low as $21.11, the shares are grappling with support at the 50-day moving average, which captured pullbacks in June and August. Year to date, the equity is up 27.4%. 

Options traders are chiming in after the event. So far, LEVI has seen 12,000 calls and 8,963 puts exchanged, which is already more than 10 times the options volume it typically sees in an entire session. The October 24 put is the most popular, followed by the October 23 call. 

Meanwhile, though short interest has been unwinding, down 17.4% in the last two weeks, it still represents 9% of the stock's available float. It would take shorts over three days to cover, at LEVI's average pace of trading.