Options Pricing in Bigger-Than-Usual Earnings Move for Steel Stock

Schnitzer Steel is set to report its fiscal second-quarter earnings tomorrow morning

Managing Editor
Apr 4, 2018 at 12:05 PM
facebook X logo linkedin


Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) is set to report its fiscal second-quarter earnings tomorrow before the stock market opens. Over the past eight quarters, the stock has swung 4%, on average, in either direction in the session after the company reported. This time around, the options market is pricing in a larger-than-usual 6.4% next-day move, per Trade-Alert.

Currently, Schnitzer Steel stock's Schaeffer's put/call open interest ratio (SOIR) of 0.85 is in the 97th percentile of its annual range. Though the ratio indicates that short-term calls still outnumber puts on an absolute basis, the elevated percentile indicates that near-term traders have rarely shown a greater preference for puts over calls in the last year.

Schnitzer Steel stock has pulled back since its mid-March highs, and today, the shares are on pace to close a third straight day beneath their 120-day moving average -- something we haven't seen since June 2017. Today, SCHN has reversed early losses to trade up 0.5% at $32.10, at last check. The $31 level has emerged as a foothold for the shares in 2018, and corresponds with a roughly 50% year-over-year gain.

Lastly, short interest on SCHN rose 12.7% during the two most recent reporting periods, and now represents nearly 10% of the stock's total available float. At the Schnitzer Steel stock's average daily trading volume, it would take exactly nine days for the shorts to cover their bearish bets.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI