The security could benefit from a shift in sentiment in the options pits
After a stormy April, traders may be looking for ways to recoup some of their losses. Cintas Corporation (NASDAQ:CTAS) looks like a bullish portfolio contender for May, as the equity just made into a list of 25 stocks that have historically outperformed in the month of May. Below, we will dive into CTAS' chart performance of late, and outline why now may be a good time to bet on a move higher for the shares.
Digging deeper, Cintas stock is among the top five names on Schaeffer's Senior Quantitative Analyst Rocky White's list of best S&P 500 Index (SPX) equities to own in May over the last decade. CTAS averaged a 4.1% pop for the month, settling higher in nine out of those 10 years. It is also the only industrial support services name to make the list.
The security is down 0.2% to trade at $390.65 this afternoon. However, the $385 level seems to have contained the stock's latest pullback from the $436 area, as well as the 320-day moving average. Plus, CTAS is up 11.6% year-over-year.
Albeit amid light absolute volume, Cintas stock could greatly benefit from a shift in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CTAS' 10-day put/call volume ratio of 70.67 sits higher than 99% of readings in its annual range. This indicates puts are getting picked up at a much quicker-than-usual pace. Should some of this pessimism start to unwind, the equity could bounce stage a bounce higher.