Signal Says ATUS Stock Could Bounce

The options pits have been overwhelmingly bearish lately

Deputy Editor
Feb 3, 2020 at 3:56 PM
facebook twitter linkedin

It's been a tough run for Altice USA Inc (NYSE:ATUS) stock these past couple months, with a post-earnings bear gap knocking the stock off its early November highs, and mounting pressure at the $29.50 region keeping the equity from closing said bear gap. More recently, however, ATUS has found its footing atop the $26.50 level, and is now eyeing its third consecutive win, up 2.3%, to trade at $27.95 at last check. Plus, the security just ran into a trendline that's historically meant more upside on the charts. 

Specifically, ATUS just pulled back to its 200-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White the cable concern has experienced two similar moves in the past three years, and was up 5.12% on average one month later. From its current perch, a similar pop would put ATUS at $28.59. 

ATUS Chart Feb 3

An unwinding of bearish bets at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) could also put some wind at the equity's back. In the last 10 days, 4.68 puts have been bought for every call. This ratio sits in the top percentile of its annual range, suggesting a much larger-than-usual appetite for bearish bets of late. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners