We kept a clear head in the face of all the hoopla surrounding JC Penney’s (JCP) new strategic initiatives prompted by former Apple executive Ron Johnson joining the firm as CEO last June. As we had expected, the retailer posted a massive first-quarter loss Tuesday (click here), and we expect continued valuation downside in the shares to the mid-$20s. We are currently evaluating the firm as a put-option candidate in the portfolio of our Best Ideas Newsletter.