Bulls Target Spotify Stock Before Earnings

Call volume is running double to what's typically seen at this point

Digital Content Manager
Oct 26, 2021 at 1:20 PM
facebook X logo linkedin

Music streaming stock Spotify Technology SA (NYSE:SPOT) is clinging close to its breakeven during today's session, last seen up less than 0.1% at $258.07, as investors await the company's third-quarter earnings results, which are due out before the open tomorrow. Analysts are expecting a loss of 19 cents per share for the quarter, and a rise in revenue from last year. 

While the security isn't seeing much movement today, Spotify stock's options pits are bursting with activity. So far, 6,083 calls have exchanged hands, which is double the intraday average and nearly two times the number of puts traded. The most popular contract is the weekly 10/29 300-strike call, followed by the 280-strike call in the same series, with positions being opened at both. This implies these traders are expecting more upside for the underlying stock following Spotify's quarterly report. 

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SPOT's 50-day call/put volume ratio of 1.98 sits in the 95th percentile of its annual range. This suggests long calls have rarely been more popular this year. 

The security does appear to be on the up-and-up, adding 14.5% in October so far, with strong guidance from its 10-day moving average. Should this afternoon's muted gains hold, SPOT could log its highest close since mid-July. SPOT still sports an 18% year-to-date deficit however, and could run into pressure at its 320-day moving average, which rejected a rally attempt in September. 

spot stock  oct 26

Spotify stock has made some outsized post-earnings moves, including a 12.3% drop in April, and a 16.2% rise all the way back in October 2019. Overall, the security tends to fall the day after earnings, logging negative returns during six of its last eight sessions. Regardless of direction, SPOT has averaged a next-day swing of 8%, which is slightly lower than the 10.1% move options traders are pricing in. 





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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI