Capri Holdings Options Trading Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy CPRI?
Source: NASDAQ.COM
- Options Selling Risk: Selling puts on Capri Holdings does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless shares decline by 44%, the only benefit is a 7.8% annualized return from the premium.
- Cost Basis Analysis: If the contract is exercised at a $10 strike, the seller's cost basis would be $8.61 per share after commissions, indicating that actual gains only materialize under significant price drops, highlighting the risk-reward imbalance in options trading.
- Volatility Indicator: Capri Holdings has a trailing twelve-month volatility of 64%, which, when combined with fundamental analysis, can assist investors in assessing whether selling the December 2027 puts at a $10 strike is a worthwhile risk.
- Market Trading Dynamics: On Monday afternoon, the put volume among S&P 500 components reached 1.08 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about market volatility.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CPRI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CPRI
Wall Street analysts forecast CPRI stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 18.320
Low
21.00
Averages
26.46
High
32.00
Current: 18.320
Low
21.00
Averages
26.46
High
32.00
About CPRI
Capri Holdings Limited is a global fashion luxury company, consisting of brands, such as Michael Kors and Jimmy Choo. Its Michael Kors segment includes the sale of Michael Kors products through four primary Michael Kors retail formats: Collection stores, Lifestyle stores (including concessions), outlet stores and e-commerce sites, through which it sells Michael Kors products, as well as licensed products bearing the Michael Kors name, directly to consumers throughout the Americas, certain parts of EMEA and certain parts of Asia. It also sells Michael Kors products directly to department stores, primarily located across the Americas and Europe, to specialty stores and travel retail shops, and to its geographic licensees. Its Jimmy Choo segment includes the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, through its e-commerce sites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Capri Holdings Options Trading Analysis
- Options Selling Risk: Selling puts on Capri Holdings does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless shares decline by 44%, the only benefit is a 7.8% annualized return from the premium.
- Cost Basis Analysis: If the contract is exercised at a $10 strike, the seller's cost basis would be $8.61 per share after commissions, indicating that actual gains only materialize under significant price drops, highlighting the risk-reward imbalance in options trading.
- Volatility Indicator: Capri Holdings has a trailing twelve-month volatility of 64%, which, when combined with fundamental analysis, can assist investors in assessing whether selling the December 2027 puts at a $10 strike is a worthwhile risk.
- Market Trading Dynamics: On Monday afternoon, the put volume among S&P 500 components reached 1.08 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about market volatility.
See More
Oil Prices Surge Amid U.S.-Iran Tensions
- Oil Price Surge: Oil prices are rising sharply due to concerns over the U.S.-Iran conflict, with global benchmark Brent nearing $90 per barrel and U.S. crude approaching $87, posing challenges to American energy self-sufficiency and potentially leading Gulf producers to halt exports, exacerbating market uncertainty.
- Market Pressure: Rising oil prices are putting pressure on stock futures, particularly in light of an unexpected drop in February payrolls, leaving the market in a state of limbo, prompting analysts to advise caution against exiting stocks despite the prevailing uncertainty.
- Strong Performance by Marvell: Chipmaker Marvell raised its revenue growth projections for fiscal years 2027 and 2028 following a strong finish to FY26, driven by booming data center demand, with shares rising 11% in premarket trading, indicating strong market confidence in its growth trajectory.
- Costco Sales Growth: Costco reported impressive same-store sales growth, although its membership renewal rates in the U.S. and Canada remain under pressure, leading analysts to raise their price targets, reflecting optimism about the company's long-term performance despite current challenges.
See More
Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry Experience Declines of 2% to 8%
- Stock Performance: Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry have all seen their stock prices decline by 2% to 8%.
- Market Trends: The drop in stock prices reflects broader market trends affecting retail companies.
See More
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
Capri Holdings Appoints New CFO and COO
- Executive Appointment: Capri Holdings has appointed Tyler Reddie as CFO and COO, effective March 30, bringing extensive experience from his previous role as CFO of The Body Shop, which is expected to enhance the company's financial and operational management.
- Strategic Leadership: Reddie is recognized as an exceptional finance and operations leader, and his strategic mindset and international experience are anticipated to support Capri's future growth and long-term value creation, as noted by CEO John Idol.
- Stock Price Movement: Capri Holdings shares experienced a slight decline in after-hours trading, priced at $20.26, indicating a cautious market response to the new executive appointment.
- Brand Impact: As the parent company of luxury brands like Michael Kors and Jimmy Choo, the executive change at Capri Holdings may influence its brand strategy and market performance, prompting investors to monitor future business developments.
See More
David Einhorn's Concerns on AI Overvaluation Impacting Stock Picks
- Investment Strategy Shift: David Einhorn invested tens of millions in Q4 2025 to increase stakes in Graphic Packaging and Capri Holdings by over 70%, reflecting his concerns about AI-driven market overvaluation and indicating a strategic pivot away from big tech.
- Stock Performance Volatility: Despite Graphic Packaging's shares dropping about 23% in Q4 2025 and over 44% for the year, Wall Street analysts remain optimistic, with an average price target suggesting more than 35% upside, indicating expectations for a rebound in the stock.
- Healthcare Investments: Einhorn more than doubled his position in Acadia Healthcare to over $58 million, despite a 43% plunge in Q4; however, analysts maintain a buy rating with a price target suggesting over 16% upside in the next 12 months, reflecting confidence in its recovery.
- Cautious on Tech Stocks: While expressing concerns about tech valuations, Einhorn established a $35 million stake in Global Payments, which fell 31% in 2025 but rebounded nearly 5% in 2026, with analysts' price targets implying over 25% upside, suggesting market optimism for its future performance.
See More
Capri Holdings Options Trading Analysis
- Options Selling Risk: Selling puts on Capri Holdings does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and unless shares decline by 44%, the only benefit is a 7.8% annualized return from the premium.
- Cost Basis Analysis: If the contract is exercised at a $10 strike, the seller's cost basis would be $8.61 per share after commissions, indicating that actual gains only materialize under significant price drops, highlighting the risk-reward imbalance in options trading.
- Volatility Indicator: Capri Holdings has a trailing twelve-month volatility of 64%, which, when combined with fundamental analysis, can assist investors in assessing whether selling the December 2027 puts at a $10 strike is a worthwhile risk.
- Market Trading Dynamics: On Monday afternoon, the put volume among S&P 500 components reached 1.08 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about market volatility.
See More
Oil Prices Surge Amid U.S.-Iran Tensions
- Oil Price Surge: Oil prices are rising sharply due to concerns over the U.S.-Iran conflict, with global benchmark Brent nearing $90 per barrel and U.S. crude approaching $87, posing challenges to American energy self-sufficiency and potentially leading Gulf producers to halt exports, exacerbating market uncertainty.
- Market Pressure: Rising oil prices are putting pressure on stock futures, particularly in light of an unexpected drop in February payrolls, leaving the market in a state of limbo, prompting analysts to advise caution against exiting stocks despite the prevailing uncertainty.
- Strong Performance by Marvell: Chipmaker Marvell raised its revenue growth projections for fiscal years 2027 and 2028 following a strong finish to FY26, driven by booming data center demand, with shares rising 11% in premarket trading, indicating strong market confidence in its growth trajectory.
- Costco Sales Growth: Costco reported impressive same-store sales growth, although its membership renewal rates in the U.S. and Canada remain under pressure, leading analysts to raise their price targets, reflecting optimism about the company's long-term performance despite current challenges.
See More
Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry Experience Declines of 2% to 8%
- Stock Performance: Abercrombie & Fitch, Gap, VF Corp, Capri, Ralph Lauren, and Tapestry have all seen their stock prices decline by 2% to 8%.
- Market Trends: The drop in stock prices reflects broader market trends affecting retail companies.
See More
DME Capital Increases Stake in Capri Holdings Significantly
- Share Increase: According to an SEC filing dated February 17, 2026, DME Capital increased its position in Capri Holdings by 2,080,410 shares during Q4, with an estimated transaction value of $48.12 million, indicating confidence in Capri's future performance.
- Increased Holding Proportion: Capri Holdings now accounts for 4.1% of DME's assets under management, up from 2.1% in Q3, making it the seventh-largest holding, reflecting investor optimism about the company.
- Declining Financial Performance: Despite the increase in holdings, Capri Holdings is expected to finish FY 2026 with $3.5 billion in sales, down from $4.4 billion in FY 2025, highlighting the market challenges the company faces.
- Tariff Impact: With the Supreme Court ruling parts of the Trump administration's tariffs unconstitutional, Capri may benefit from improved gross margins in the future, even as its stock has declined by 5.3% over the past year.
See More
Capri Holdings Appoints New CFO and COO
- Executive Appointment: Capri Holdings has appointed Tyler Reddie as CFO and COO, effective March 30, bringing extensive experience from his previous role as CFO of The Body Shop, which is expected to enhance the company's financial and operational management.
- Strategic Leadership: Reddie is recognized as an exceptional finance and operations leader, and his strategic mindset and international experience are anticipated to support Capri's future growth and long-term value creation, as noted by CEO John Idol.
- Stock Price Movement: Capri Holdings shares experienced a slight decline in after-hours trading, priced at $20.26, indicating a cautious market response to the new executive appointment.
- Brand Impact: As the parent company of luxury brands like Michael Kors and Jimmy Choo, the executive change at Capri Holdings may influence its brand strategy and market performance, prompting investors to monitor future business developments.
See More
David Einhorn's Concerns on AI Overvaluation Impacting Stock Picks
- Investment Strategy Shift: David Einhorn invested tens of millions in Q4 2025 to increase stakes in Graphic Packaging and Capri Holdings by over 70%, reflecting his concerns about AI-driven market overvaluation and indicating a strategic pivot away from big tech.
- Stock Performance Volatility: Despite Graphic Packaging's shares dropping about 23% in Q4 2025 and over 44% for the year, Wall Street analysts remain optimistic, with an average price target suggesting more than 35% upside, indicating expectations for a rebound in the stock.
- Healthcare Investments: Einhorn more than doubled his position in Acadia Healthcare to over $58 million, despite a 43% plunge in Q4; however, analysts maintain a buy rating with a price target suggesting over 16% upside in the next 12 months, reflecting confidence in its recovery.
- Cautious on Tech Stocks: While expressing concerns about tech valuations, Einhorn established a $35 million stake in Global Payments, which fell 31% in 2025 but rebounded nearly 5% in 2026, with analysts' price targets implying over 25% upside, suggesting market optimism for its future performance.
See More
