Checking in With Yeti Stock Ahead of Earnings

Puts volume is running double its intraday average

Deputy Editor
Nov 10, 2021 at 1:26 PM
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Drinkware and cooler manufacturer Yeti Holdings Inc (NYSE:YETI) is getting ready to step into the earnings confessional with its third-quarter results due out before the open, tomorrow Nov. 11. The stock is taking a breather today, last seen down 1% at $104.99. YETI hit a record high of $108.82 last Friday, Nov. 5 after staging a rally off its 200-day moving average in mid-October. Year-to-date, the stock is up 53.6% 

yeti nov 11

Put trading is ramping up ahead of the event, with volume running double the intraday average. So far, 2,557 puts have exchanged hands, compared to 2,367 calls. The most popular contract is the weekly 11/12 87-strike put, where positions are being bought to open, followed by the November 105 call. 

Yeti stock has a history of mixed post-earnings swings, with half of its last eight next-day returns coming in higher, including a 16.5% pop this time last year. The equity has averaged a post-earnings move of 5.7%, regardless of direction, which is much lower than the 12.4% swing the options pits are pricing in this time around. 

A longer-term look shows calls have been much more popular, with 4.11 of these contracts picked up for every put during the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 88% of readings from the past 12 months, suggesting this penchant for bullish bets is unusual. 

Analysts are optimistic on the stock. Of the 12 in coverage, eight say "buy" or better. The 12-month consensus price target of $111.94, meanwhile, is a 7.1% premium to current levels. 

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