Option Activity Watch

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Check out some noteworthy options activity that's been going on in recent weeks
Published on Jul 19, 2021 at 3:31 PM
Updated on Jul 23, 2021 at 1:53 PM
  • Quantitative Analysis

McDonald's Corp (NYSE:MCD) is gearing up for its second-quarter earnings report, due out before the open on Wednesday, July 28. Shares of MCD are pulling back ahead of the event, off 3.4% at $226.73 at last check, as the broader market takes a dive. McDonald's stock is coming off a July 14 record high of $239.05, too, though there's reason to believe this recent pullback could be short lived. 

McDonald's stock just pulled back to its 80-day moving average after months above the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, similar moves have occurred four other times over the past three years, and enjoyed positive one-month returns 67% of the time, averaging a 0.2% pop. Slightly below this trendline is the 120-day moving average, which kept a lid on shares until MCD broke higher in mid-March. 

mcd chart july 19

Puts are popular with McDonald's stock today, with 16,000 across the tape so far -- triple the intraday average amount -- compared to 13,000 calls. The most popular is the 7/23 225-strike put, followed by the 227.50-strike put in the same weekly series, with positions being opened at both. 

Drilling down to MCD's post-earnings moves over the past two years, results have been a mixed bag, with the equity dropping lower after five of these eight reports, though several of these next-day drops have been muted. Regardless of direction, McDonald's stock has averaged a 1.6% move the day after earnings, which is smaller than the 3.8% swing the options pits are pricing in this time around. 

Published on Jun 14, 2021 at 12:46 PM
  • Intraday Option Activity
Unsurprisingly, this upbeat price action has caught the attention of options traders. So far today,116,000 calls and 33,000 puts have crossed the tape, 25 times the intraday average. 
Published on Apr 16, 2020 at 2:18 PM
Updated on Mar 19, 2021 at 7:15 AM
The firm last week posted fiscal fourth-quarter losses of 37 cents per share, which was wider than analysts' estimates, while the reported $5.73 billion in revenue was higher than expected. 
Published on Apr 20, 2020 at 11:08 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
  • Editor's Pick
In light of Friday's breakout, options traders are blasting the energy stock, with a greater-than-normal tilt toward puts. 
Published on Apr 20, 2020 at 1:25 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
Retail giant Walmart Inc (NYSE:WMT) is pulling back this afternoon, after hitting a record high of $133.38 earlier today, on a Wall Street Journal report that the company's sales jumped nearly 20% in March.
Published on Apr 20, 2020 at 1:51 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
  • Technical Analysis
  • Earnings Preview
Taking a deeper look at Cadence Design Systems stock and what the options market is pricing in for the equity's post-earnings moves.
Published on Apr 21, 2020 at 12:16 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stock Market News
Many of the menu items will feature products made by Beyond Meat Inc (NASDAQ:BYND), marking a massive step for the company as it looks to expand into Asian markets where alternative meat products have not yet caught on. 
Published on Apr 24, 2020 at 2:25 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks
In the options pits, traders could be betting on some sort of short-term bounce with calls. At last check, over 7,700 calls have been ordered up, double the intraday volume and two times the number of puts changing hands. 
Published on Apr 27, 2020 at 1:23 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
  • Earnings Preview
The marijuana producer just announced plans to release its first-quarter earnings report next Friday, May 8, and options players are placing bets on CRON ahead of the event. 
Published on Apr 27, 2020 at 2:53 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Most Active Weekly Options
  • Intraday Option Activity
  • Editor's Pick
Below, we'll take a closer look at the options activity surrounding the two semiconductor stalwarts, and see how they has been performing on the charts amid the coronavirus outbreak.
Published on May 5, 2020 at 10:03 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks
SBUX is experiencing plenty of call activity in the options pits already. At last check, over 8,500 calls have crossed the tape, double the number of puts traded and volume pacing for the 94th percentile of its annual range.
Published on May 6, 2020 at 9:58 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
  • Buzz Stocks

The shares of Beyond Meat Inc (NASDAQ:BYND) are up 12.5% to trade at $112.42 this morning, after the plant-based meat substitute manufacturer reported first-quarter earnings of 3 cents per share on revenue of $97.07 billion, both of which beat out Wall Street's estimates. While the company suspended its 2020 guidance, expansion in retail outlets and supermarkets helped offset struggling restaurant sales amid the coronavirus outbreak. 

This is the company's first positive post-earnings reaction since June of last year. Today's pop moves Beyond Meat stock up 47% year-to-date. And should today's gains hold, the shares will have conquered their 200-day moving average for the first time ever on a closing basis.

Six analysts have already chimed in with price-target hikes, the highest coming from from Piper Sandler, which lifted its estimate to $95 from $72. However, the brokerage firm also warned to expect near-term headwinds in its restaurant channels amid the COVID-19 fallout. The bull notes today runs counter to the overall analyst sentiment. Of the 14 in coverage, 11 rate it a tepid “hold” or worse. Echoing this is the consensus 12-month price target of $84.95, which sits at a 15.2% discount to current levels.

Short sellers keep piling on, with short interest up 7.5% in the last reporting period. Now, the 9.16 million shares sold short makes up a whopping 29.9% of the stock's available float, which could be fuel more gains for the stock should some of this pessimism begin to unwind. 

In the options pits, BYND sports 10-day call/put volume ratio of 2.22 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), a ratio that sits in the elevated 87th percentile of all other readings from the past 12 months. This suggests the appetite for short calls have been relatively health in the last 10 weeks. 

Today, calls continue their reign. Already, 60,000 calls have changed hands, eight times the average intraday amount and double the number of puts traded. Leading the charge is the weekly 5/8 120-strike call, where new positions are being opened. Buyers of this call are banking on more gains for BYND by the end of the week, when the options expire.

Make the Most of the next Expiration Week Countdown!


 
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