This week's edition of Options Spotlight takes a look at Red Hat Inc. (RHT: sentiment, chart, options). Red Hat dominates the market for Linux, the open-source computer operating system (OS) that is the chief rival to Microsoft's Windows operating systems, according to Hoover's. In addition to its Red Hat Enterprise Linux OS, the company's product line includes database, content, and collaboration management applications; server and embedded operating systems; and software development tools. Red Hat also provides consulting, custom software development, support, and training services. The company's business model is a mix of providing free, open-source software paired with subscription-based support, training, and integration services.
Looking ahead, the company is slated to report earnings on Dec. 21, according to Thomson Reuters. Analysts are expecting a profit of 16 cents per share, which is down from the firm's year-ago profit of 24 cents per share. Historically, RHT has put in a solid performance, as it has surpassed the consensus estimate in each of the past four quarters.
In the Options Spotlight, I shine a light on what's happening in the options world. In the case of Red Hat, put activity has been brisk on the shares as investors attempt to call a top to the security's rally. Has this stock's uptrend finally reached an end? For a closer look at Red Hat and its sentiment backdrop, please click on the video button below.
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