These long calls lock in an entry price for buying the stock, which means they can double or triple from a modest gain in the shares. But they will also go to zero if Kohl's fails to rally in the next five weeks.
The department-store operator's stock fell 1.39 percent to $48.14 Monday and is down 13 percent in the last month. It's been riding a wave of strong earnings reports since the summer and is attempting to bounce around the same level where it peaked in September. If the shares manage to hold support at this level, some chart watchers may consider it a bullish indicator.
Overall option volume was four times greater than average in the stock Monday, with calls outnumbering puts by a bullish 7-to-1 ratio.
—Russell has no positions in KSS.
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David Russell is a reporter and writer for OptionMonster.