Option Bulls Crowd Hasbro Stock Ahead of Earnings

HAS is down 24.4% year-to-date

Assistant Editor
Jul 23, 2020 at 1:52 PM
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The shares of Hasbro, Inc. (NASDAQ:HAS) are up 1.5% to trade at $80.31 at last check, ahead of the company's second-quarter report, which is due out before the open on Monday, July 27. Below, we will take a look at the equity's latest performance on the charts, and explore some of the options activity surrounding HAS ahead of the event. 

After beginning the year on the right foot, Hasbro stock sunk to a seven-year low during the broader market's mid-March pullback. Since then, the stock recovered for the most part, though it's now seeing overhead resistance at the $81 level. As a result, the equity is stuck in a 24.4% year-to-date slump, but could have a shot at toppling its 150-day moving average, should today's movement continue in the right direction.

HAS Chart 2 July 23

Meanwhile, options bulls are piling on HAS. The equity's 50-day call/put volume ratio of 3.59 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the highest percentile of its annual range. In other words, calls are being picked up at a much quicker-than-usual clip. 

A look at Hasbro stock's post-earnings moves during the past two years shows a grim history, with five of eight reactions negative. The equity has averaged a post-earnings swing of 8.1% over the last eight quarters, regardless of direction. This time around, the options market is pricing in a slightly higher move of 9.6% for Monday's trading.

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