A Round Robin of Volatility in Clothing Makers

Stark sales numbers from leading retailers has thrown a bucket of cold water all over nascent hopes of a recovery from Wednesday's big selloff in stocks, and evidence of further defensiveness in retailers in evidence in the options market today. We hasten to add that the extension of selling pressure in shares has driven the Volatility Index nearly 11% higher today to retake the 60-percent level -- a cue that prices of puts and calls on S&P components will be high.

Shares in Kohl's (KSS - commentary - Cramer's Take) are reading 2.8% higher at $34.26 despite a 9% decline in October comp store sales, bucking the trend seen in broader retail stocks amid similarly appalling comp numbers. However, traders appear to be playing against this upside, selling November 40 calls on volume more than double the open interest in what may be covered-call selling designed to reap the benefits of a 33% boost in premiums at that strike.

We also, however, noted large-scale buying pressure in deep downside puts at the January $22.50 strike, these contracts sell Kohl's at a $4 discount to the standing 52-week low fetching $1 apiece. Implied volatility at 87.4% shows the same level of attendant concerns about midmarket and upscale retailers, weighing in at 87.5% vs. 77.6% historic volatility in Kohl's stock. Implied volatility has shown a general uptrend over the past month, up 45% since October 1.

Elsewhere, implied volatility in Ann Taylor (ANN - commentary - Cramer's Take) options rose 31.7% today to 122.0%, as shares shaved more than one-quarter of their value to $8.90 following a cut in the career wear maker's quarterly profit forecast.

In a final -- and somewhat eclectic -- garment options play, we point to shares in Gildan Activewear (GIL - commentary - Cramer's Take) -- the producer of so-called "branded basic activewear" to wholesalers who then screen-print them. Gildan's stock is down about a percent to $23.23, roughly half its highest level of the past 52 weeks.

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At the time of publication, Darst had no positions in the stocks mentioned.

Rebecca Engmann Darst is the Portfolio Manager for TheStreet.com?s Options Alerts Portfolio newsletter and an equity options analyst for RealMoney Each Thursday at 6:30 a.m. EST, she delivers the early-morning lowdown on option volume and sector trends on CNBC's "Squawk Box." Prior to her work in the equity options market, she spent seven years in Scandinavia as a Copenhagen-based chief reporter for a European Commission news service, correspondent for Spanish daily El Mundo and Radio Netherlands, followed by stints at Nordea Bank and Saxo Bank.