Traders Buy Dropbox Put Options Before Earnings

DBX traded as high as $43.50 back in mid-June

Aug 8, 2018 at 10:45 AM
facebook X logo linkedin


Cloud storage specialist Dropbox Inc (NASDAQ:DBX) is about to release earnings for the second time since going public in March, with the company set to report after the close tomorrow, Aug. 9. The first time around, DBX shares dipped 2.2% the day after earnings, even though the company topped estimates. Going by options data, Wall Street is expecting a much more explosive move this time, with implied volatility data pricing in a 15.2% swing for Friday's session.

A quick check at the numbers on the equity from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows that put buying has outpaced call buying during the past 10 days. During this time frame, the October 30 put saw the largest increase in open interest, with heavy buy-to-open activity confirmed. To be even more recent, the September 27 put led the way in the past five sessions, and traders were mostly buying to open positions here, as well.

For the most part, DBX shares have traded in a tight range since their IPO, save their dramatic mid-June rise to $43.50 -- which, for what it's worth, coincided with massive gains in the cloud sector as a whole. The stock also recently dipped below the $27 mark, though analysts labeled this a buying opportunity. Dropbox was last quoted at $30.85, just above its 20-day moving average.

dbx shares

 

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