Just like many of the Texas Shale oil companies during the oil downturn with massive debt, Sears is what we're calling "Walking Dead" of the retail industry. The recent rally of price has likely come from many of the shorts closing their positions at large profits, and the huge drop has come from professional and retail traders alike identifying an opportunity to ride the price downward.
This stock is the definition of high risk on either side, so the best play is a long term option spread; enter the December strikes.
If you missed the last week's signal, then have no fear. As of now, if you were to sell the December $11/12 call spread, you have a 70% chance of making 30% Return on Investment/Risk (ROI/ROR) for 8 months of waiting. That's pretty good odds and not a bad return for less than a year's work.
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Adding to short position on break to the downside on Friday
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And the downtrend continues...we love when we're right