Published on Jun 25, 2020 at 10:58 AM
Updated on Jul 8, 2020 at 11:31 AM
  • Buzz Stocks
  • Intraday Option Activity

The shares of McCormick & Company, Incorporated (NYSE: MKC) are up 3.7% at $177.64 today, and earlier nabbed a record high of $180.93 out of the gate. This comes after the spice and seasoning mix company reported second-quarter profits of $1.47 per share on $1.4 billion in revenue, considerably higher than Wall Street's estimated $1.16 on $1.37 billion. The company attributed the boosted results to an increase in home cooking during COVID-19 lockdowns, and said it expects increased demand to continue through the the second half of 2020.

On the charts, MKC has staged an impressive comeback from its late-March lows near the $112 level, culminating in a then record-high of $180.38 on May 18. And while MKC has traded sideways since then, the stock's 40-day moving average has stepped up as support over those past couple of weeks, a sure contributor to the equity's now 27.7% lead for the quarter. 

Analysts were largely skeptical toward MKC coming into today, with five of the eight in coverage carrying a tepid "hold," while the remaining three called it a "sell" or worse. Meanwhile, the stock's consensus price target of $154.30 is a 12.3% discount to current levels. In other words, MKC could climb even higher in the event of a shift in analyst attention.

The appetite for calls is unusually high in the option pits, however. In the last 10 days, 1.63 calls were bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 82% of readings from the past year, meaning calls are being picked up at a faster-than-usual clip.

The options pits have exploded today, amid limited absolute volume. At last check, call trading was sitting at 10 times the average intraday amount, and almost triple the number of puts traded. The most popular is the July 185 call, with new positions being opened. Buyers of this call are banking on a sustained push higher from MKC in the next month, when the options expire.

Now with earnings in the rear-view mirror, a volatility crush means options are affordably marked. MKC's Schaeffer's Volatility Index (SVI) of 32% sits in the 22nd percentiles of all other readings from the past year. This means options players have been pricing in relatively low volatility expectations at the moment.  
Published on Jul 8, 2020 at 9:57 AM
  • Buzz Stocks
  • Intraday Option Activity

Biopharmaceutical concern Biogen Inc (NASDAQ:BIIB) is up 7.8% to trade at $289.18 this morning, after the company submitted a marketing application to the Food and Drug Administration (FDA) regarding its Alzheimer's disease treatment aducanumab. According to a release from Biogen, "If approved, aducanumab would be the first treatment with the potential to meaningfully change the course of Alzheimer's disease."  

On the charts in the last 12 months, mid-October and early-February bull gaps sent shares soaring but were undone by the last six months of lower lows. For the past month though, the stock has found support at the $260 level. And while the shares are up 7.7% for the month so far, today's breakout has been stymied by their 40-day moving average.

The options pits show a preference for puts. BIIB sports a 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 74th percentile of readings from the past 12 months. Echoing this, Biogen stock's Schaeffer's put/call open interest ratio (SOIR) of 1.47 sits higher than 99% of readings in its annual range, suggesting short-term option players have rarely been more put-biased during the past 12 months.

Today though, options traders are targeting calls. In just the first hour of trading, over 4,500 calls have changed hands -- seven times the average intraday amount and volume pacing for the 99th percentile of its annual range. The most popular so far is the July 300 call, while new positions are being opened at the weekly 7/10 300-strike call.

Published on Jun 25, 2020 at 3:37 PM
Updated on Jul 7, 2020 at 3:55 PM
  • Buzz Stocks
  • Intraday Option Activity

The firm's revenue also beat analysts' expectations. The company attributed the better-than-anticipated results to a spurt in sales of over-the-counter medicines, sanitizers, cleaning, and paper products during the COVID-19 pandemic.

Published on Jul 7, 2020 at 11:20 AM
  • Buzz Stocks
  • Intraday Option Activity
Vivint's options pits have exploded today in response to the deal. At last check, over 12,000 calls have changed hands, 32 times the average intraday amount and 13 times the number of puts traded.
Published on Jun 22, 2020 at 12:57 PM
Updated on Jul 7, 2020 at 10:43 AM
  • Most Active Weekly Options
  • Intraday Option Activity
  • Editor's Pick
Standing out this week is Roku Inc (NYSE:ROKU), a company that investors have kept a close eye on after at least once price-target cut was dished out. Meanwhile, the threat of additional lockdown-measures could send the stock up. 
Published on Jul 6, 2020 at 3:14 PM
Updated on Jul 6, 2020 at 3:16 PM
  • Intraday Option Activity
  • Buzz Stocks
TME calls are changing hands at seven times the intraday average, volume good for the 99th percentile of its annual range, and nearly 40 times the amount of puts that are trading.
Published on Jul 6, 2020 at 11:10 AM
Updated on Jul 6, 2020 at 11:44 AM
  • Most Active Weekly Options
  • Intraday Option Activity
  • Editor's Pick
A glance at today's trading reveals more of the same, with 209,000 calls and 46,000 puts across the tape so far -- three times the average daily pace. Most popular is the weekly 7/10 12-strike call, where it appears positions are being sold to open. 

Published on Jul 2, 2020 at 1:13 PM
  • Buzz Stocks
  • Intraday Option Activity
The company also rolled out a new Spotify Premium Duo plan for couples at $12.99 per month. 
Published on Jul 1, 2020 at 3:29 PM
  • Buzz Stocks
  • Intraday Option Activity

The health crisis forced Macy's (M) to tap credit lines, lay off thousands of employees and suspend dividends and buybacks in order to stay afloat.

Published on Jun 30, 2020 at 11:06 AM
Updated on Jun 30, 2020 at 11:15 AM
  • Buzz Stocks
  • Intraday Option Activity

The shares of Lululemon Athletica Inc (NASDAQ: LULU) are up 4.6% at $308.01 this morning, after the athletic apparel retailer announced late Monday night the acquisition of home fitness company Mirror for $500 million. The move allows Lululemon to cash in on booming demand for home-workout classes and equipment, which was spurred by coronavirus lockdowns. As a result of the incoming acquisition, LULU earned a price-target hike from Cowen and Company to $335 from $311. 

The equity has staged an impressive comeback since dropping to its mid-March, two-year lows near the $128 level, culminating in an all-time-high of $324.76 on June 10. Though the shares pulled back some after that peak, their 40-day moving average contained the damage. Longer-term, LULU now sports a 71% year-over-year lead. 

Analysts were majorly optimistic toward the equity coming into today, with 18 of the 27 in coverage calling it a "buy" or better, and the remaining nine calling it a "hold." Meanwhile, the consensus 12-month price target of $320.42 is only a 3.2% premium to current levels, suggesting there is room for more price-target hikes toward the athleisure retailer.

That sentiment is echoed in the options pits today, where the appetite for calls is high. At last check, over 38,000 calls have changed hands, six times the average intraday amount and over three times the number of puts traded. Leading the charge is the weekly 7/2 320-strike call, followed closely by the 315-strike call contract in the same series, with new positions being opened at each.

What's more, Lululemon stock's Schaeffer's Volatility Scorecard (SVS) sits high at 79 out of 100, showing that the equity has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.

Published on Jun 29, 2020 at 2:47 PM
Updated on Jun 29, 2020 at 2:51 PM
  • Earnings Preview
  • Intraday Option Activity

Today is more of the same. Calls are trading at nearly 2 times the average intraday amount, with July calls the three most popular by far.

Published on Jun 29, 2020 at 12:53 PM
  • Most Active Weekly Options
  • Intraday Option Activity
  • Editor's Pick
Looking at White's data, over the past 10 days, 428,404 calls and 110,871 puts have exchanged hands. Today's trading leans bullish too, with 38,000 calls across the tape so far. The weekly 7/2 30-strike call is most popular, but new positions are also being opened at the 20-strike put from the same series. 

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 

Partnercenter


MORE | MARKETstories


Where Is the Market Bottom?
Learn how to navigate these unstable market conditions
Earnings Season Set to Ramp Up With Bank Giants, Blue Chips
Netflix and United Health will also report earnings
Cruise Stock Capsizes Despite German Affiliate Setting Sail
Carnival's German affiliate, AIDA Cruises, is set to resume sailing operations in August
Where Is the Market Bottom?
Learn how to navigate these unstable market conditions