http://finance.yahoo.com/news/gap-sales-slide-april-retailer-205142472.html# http://finance.yahoo.com/news/nothing-fill-gap-shares-slide-190951981.html http://www.cnbc.com/2016/05/10/gap-shares-plunge-analyst-says-company-in-big-trouble.html?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=103622994 http://www.fool.com/investing/gener...gn=article&utm_medium=feed&utm_source=yahoo-2 http://blogs.barrons.com/stockstowa...er-sales-bloodbath/?mod=yahoobarrons&ru=yahoo http://finance.yahoo.com/news/heres-why-gap-gps-stock-174505798.html http://www.thestreet.com/story/1356...apart-cramer-says.html?puc=yahoo&cm_ven=YAHOO http://stockcharts.com/h-sc/ui?s=GPS Trade: Dec 25/30 bear call spread for a net credit of $25 Yield = 25/475 = 5.26% in 220 days or 8.7 % annualized Prob = 81% (I won't do expectation because this news coupled with previous disappointments clearly places stock price outside of any statistical distribution) Price..... Profit / Loss..... ROM % 14.48........... 25.00.......... 5.26% 18.89........... 25.00.......... 5.26% 23.55........... 25.00.......... 5.26% 25.00........... 25.00.......... 5.26% 25.25............. 0.00.......... 0.00% 28.20........ (294.70)...... -58.94% 30.00........ (475.00)...... -94.74% 32.85........ (475.00)...... -94.74% 37.50........ (475.00)...... -94.74% Remember the mall? http://www.businessinsider.com/23-haunting-photos-of-a-dead-mall-in-ohio-2015-8 But now I only hear Its melancholy, long, withdrawing roar, Retreating, to the breath Of the night-wind, down the vast edges drear And naked shingles of the world. .............................................dover beach
http://www.wsj.com/articles/fitch-downgrades-gap-to-junk-status-1462975520 This is the sort of thing that can push a troubled company over the edge. GAP debt is now junk status. Many funds etc. cannot hold debt that is less then investment grade. So GAP will need to pay higher interest rates on its debt and will have difficulty rolling over its debt and with placing any new debt. Puts another nail in their coffin.