BLK Stock Runs Hot into Earnings

BlackRock will report earnings before the open on Wednesday

Jan 14, 2020 at 12:12 PM
facebook twitter linkedin

Investment management concern BlackRock, Inc. (NYSE:BLK) hit a fresh 52-week high of $525 earlier, setting up the shares for an eighth straight weekly win. The stock was most recently seen at $516.71, as traders prepare for the company's earnings release, scheduled for before the open tomorrow, Jan. 15. BLK's 14-day Relative Strength Index (RSI) checked in at 75 before today, showing overbought conditions heading into the quarterly event.

Options traders have still been betting bullishly, however. Data from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 1.56, which ranks in the 91st annual percentile. Peak call open interest overall resides at the January 2020 510-strike call.

From a broader perspective, analysts are already fully behind the security, with eight of nine in coverage handing out "buy" or "strong buy" ratings. What's more, the average 12-month price target of $567.50 stands as a roughly 9% premium to current levels, suggesting a poor earnings performance could make analysts downwardly adjust their outlooks. Of course, earnings from large-cap finance stocks have so far been mostly solid. Regardless of direction, options traders are pricing in a 3.9% post-earnings swing for BlackRock, which last quarter gained 2.4% after its release.

blk stock jan 14


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