Schaeffers Investment Research·2026-03-04 19:28Core Viewpoint - Investors are optimistic about Ross Stores' earnings, while Gap Inc. is set to report its fourth-quarter earnings, with options traders showing bearish sentiment ahead of the announcement [1]. Group 1: Earnings and Market Reactions - Gap has a positive post-earnings history, with stock prices rising in four of the last six sessions, including an 8.2% increase in November [2]. - The options market anticipates a 16.5% price movement for Gap's stock on Friday, which is significantly higher than the historical average post-earnings move of 10.5% [2]. Group 2: Stock Performance and Trends - Gap's stock is currently trading at $27.50, below its 12-month high of $29.35, but has increased by 37% over the last year and 7.6% in 2026 [3]. - A short squeeze could potentially drive Gap's stock price higher, as short interest has decreased by 13.7%, although 22.79 million shares remain sold short [3]. Group 3: Options Market Sentiment - The 10-day put/call volume ratio for Gap is 3.97, placing it in the 100th percentile of its annual range, indicating strong bearish sentiment [5]. - The Schaeffer's put/call open interest ratio (SOIR) stands at 1.08, ranking in the 92nd percentile of its annual range, suggesting that unwinding these bearish positions could provide upward momentum for the stock [5].