Industrial Supplier Stock Rises Ahead of Earnings

FAST calls are a popular pick ahead of earnings tomorrow

Deputy Editor
Jul 13, 2020 at 12:53 PM
facebook X logo linkedin

The shares of Fastenal Company (NASDAQ:FAST) are up 1.9% to trade at $43.84 at last check, ahead of the company's fiscal second-quarter report, which is due out before the open tomorrow. Below, we will take a look at how the equity has performed on the charts as of late, and explore some of the options activity surrounding FAST ahead of the event. 

The equity has experienced its fair share of ups and downs over the last few months, dipping to an annual low of $26.72 during the broader market's mid-March pullback, only to rapidly recover to an all-time high of $44.79 on July 6. Meanwhile, Fastneal stock has been enjoying support from the 30-day moving average since early April. Longer term, FAST sports a 41.4% year-over-year lead.


Still, analysts are approaching Fastenal stock with a fair amount of skepticism. Of the 12 in coverage, nine sport a tepid "hold." Conversely, the remaining three call it a "strong buy."

In the options pits, there is still a strong preference for calls at the moment. This is per FAST's 10-day call/put volume ratio of 3.91 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the elevated 89th percentile of its annual range, suggesting a healthier-than-usual appetite for short calls of late.

Today, however, there's a lot of disagreement going on. Calls are trading at two times the average intraday amount, while puts are trading five times more than usual. Both puts and calls are trading in the 94th percentile of their annual range. The most popular option at the moment is the weekly 8/21 42.50-strike put, where new positions are being opened, followed by the July 45-strike call.

A look at the equity's history of post-earnings reactions during the past two years shows a slightly more positive response. During its last eight reports, five of these next-day sessions were higher, including a 17.2% rise in October 2019. FAST averaged a post-earnings swing of 7.1% the last eight quarters, regardless of direction. This time around, the options market is pricing in a slightly higher move of 9.2%. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI