Tyson Foods Stock Eyes Annual Highs Before Earnings

Tyson has added over 28% in 2021

Deputy Editor
Nov 11, 2021 at 1:14 PM
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Tyson Foods, Inc. (NYSE:TSN) is is getting ready to release its fiscal fourth-quarter earnings results, due out before the open on Monday, November 15. The security has done well year-to-date, adding 28.4%, with a mid-July pullback contained by the 200-day moving average. More recently, Tyson Foods stock has been guided higher by its 20-day trendline. Longer-term, TSN boasts a 35.6% year-over-year lead.

TSN Chart Nov 11

Tyson Foods stock generally fares well the day after reporting earnings. Going back two years, four of its post-earnings sessions were higher, including an 8.7% pop back in August. The options pits are pricing in a 6.5% next-day swing for the equity this time around -- slightly higher than the 5% move it averaged in the last eight quarter. From TSN's current perch of $82.64, an upswing of that magnitude would put the shares just above $88, past its Oct 25 annual high of $83.76.

Short-term options traders have been unusually bullish, of late. This is per Tyson Foods stock's Schaeffer's put/call open interest ratio (SOIR), which stands higher than just 1% of readings from the past 12 months. In other words, these traders have rarely been more call-biased.

Echoing this, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 3.37 sits higher than 98% of readings from the past 12 months. This means long calls have been getting picked up at much faster-than-usual pace in the last two months.


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