Ctrip.Com Put Buyers Active Ahead of Earnings

Analysts are upbeat toward the Chinese travel stock, though

Managing Editor
Sep 6, 2019 at 1:10 PM
facebook X logo linkedin

The shares of Ctrip.Com International Ltd (NASDAQ:CTRP) are up 1.5% this afternoon at $34.66. The online travel site is slated to report earnings after the market closes this Monday, Sept. 9. Below, we will take a look as to how the stock has been faring on the charts, as well as what the options market is pricing in for the equity's post-earnings move.

CTRP has been rapidly moving lower in recent months, down more than 25% from its mid-April annual high of $46.50. The selling stalled near the $31 region in late August, but a bounce from here is encountering pressure near $34-$35 region, home to the stock's 30-day moving average and Aug. 5 bear gap highs.

Daily CTRP with 30MA

Long puts have been popular among CTRP options traders. This is per the stock's 10-day put/call volume ratio of 2.21 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 89th percentile of its annual range, indicating puts have been bought to open over calls at an accelerated clip.

Looking at CTRP's earnings history, the security has closed lower the day after earnings five times over the past eight quarters. However, this past March, the stock closed 19.8% higher the next day. This time around, the options market is pricing in a one-day, post-earnings swing of 10.1%, regardless of direction, compared to an average post-earnings move of 7.3% over the past two years.

Elsewhere on Wall Street, analysts have been overwhelmingly optimistic toward Ctrip.com stock. As of last night's close, 11 of 16 covering firms were sporting a "buy" or "strong buy" rating on the security. Meanwhile, the stock's average 12-month price target of $44.93 comes in 29% above current trading levels.

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!