Room for Upgrades on Hasbro Stock as Earnings Near

Short interest has seen an 11% decline during the past two reporting periods

Managing Editor
Oct 21, 2019 at 1:39 PM
facebook twitter linkedin

Hasbro, Inc. (NASDAQ:HAS) stock is slightly in the red today at $120.78, and we are looking ahead to the toymaker's quarterly results, slated for before the bell tomorrow, Oct. 22. Below we will take a closer look at the equity's long-term performance on the charts, and see what the options market is pricing in for the stock's post-earnings move.

Hasbro stock has made exceptional improvement since January, now up 48% in 2019. With no fewer than two massive bull gaps and support at both the 70-day and 100-day moving averages, the security is now on its way back to record high territory above the $120 mark.  

Daily HAS with 70 and 100 Day

In terms of the company's earnings history, Hasbro stock closed higher after five of the past eight reports, including a more than 14% surge in April. This quarter, the options market is eyeing an 11.3% swing for HAS, larger-than-usual in comparison to its average 7.8% move over the past two years.

Despite its positive long-term price action, plenty of pessimism still surrounds the retailer. Five analysts still sport a tepid "hold" recommendation, and in the options pits, bears look to be at play.

Specifically, the stock's 10-day put/call volume ratio of 2.70 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Ranking in the 80% annual percentile, this indicates HAS puts have been purchased over calls at a faster-than-normal clip in the past two weeks.

Echoing this, near-term options traders are also put-skewed at the moment, based on the stock's Schaeffer's put/call open interest ratio (SOIR) of 2.55. This reading ranks in the highest percentile of its annual range, showing such a preference for short-term puts over calls is rare. What's more, peak put open interest sits at the January 2020 110-strike, where over 4,400 contracts reside.

Short interest on HAS fell 11.3% during the past two reporting periods, and now accounts for nearly 5% of the stock's total available float. In other words, at the equity's average pace of trading, it would take shorts more than a week to buy back their bearish bets.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners