We bought NRF in the LTP in July at $15.50 and sold the 2017 $13 puts and calls, so we weren't particularly bullish in the first place. $12 is fine - just a good deal as a new entry as it's down with the sector, not because they did anything particularly wrong:
In fact, they just announced that they will be buying back $500M of their own stock (>12%) and there's no indication they are cutting dividends (0.40/qtr), which are 13% at $12.07. So I still like them and, as a new trade, I'd go for buying the stock at $12.07 and selling the 2017 $13 puts for $3.50 and the $10 calls for $2.40 for net $6.17/9.59, which makes the $1.60 dividend while you wait a whopping 26% return on your cash in play.
So good it will be a Top Trade!
