Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Mar 24, 2021 at 10:51 AM
  • Analyst Update
Drilling down to today's options activity, 13,000 puts and 13,000 calls have crossed the tape so far, which is three times the intraday average. Most popular is the 3/26 465-strike call, followed by the 500-strike call in the same weekly series, with positions being opened at the former. 
Published on Mar 24, 2021 at 10:49 AM
  • Buzz Stocks
This uptick in bearish trading is pervading today's options activity, too. So far, 1,816 puts and 1,843 calls have crossed the tape -- four times the intraday average. The most popular is the April 57.50 put, followed by the 62.50 call in the same monthly series. 
Published on Mar 24, 2021 at 8:00 AM
Updated on Mar 24, 2021 at 9:18 AM
  • Indicator of the Week
    
Published on Mar 24, 2021 at 9:13 AM
  • Analyst Update
 
Published on Mar 24, 2021 at 7:39 AM
  • Buzz Stocks

Today's Stock Market News & Events: 3/24/2021

by Schaeffer's Digital Content Team

Today will feature core durable goods orders, core capital goods orders, the manufacturing PMI, the Markit composite PMI on the docket.

The following companies are slated to release quarterly earnings report today, March 24:

APi Group Corp. (NYSE:APG -- $19.23) provides commercial life safety solutions and industrial specialty services primarily in the United States. APi Group will report its Q4 earnings of 2020 before the bell today.

General Mills Inc. (NYSE:GIS -- $61.19) engages in the manufacture and marketing of branded consumer foods sold through retail stores. General Mills will report its Q3 earnings of 2021 before the bell today.

Winnebago Industries Inc. (NYSE:WGO -- $77.15) manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. Winnebago will report its Q2 earnings of 2021 before the bell today.

Worthington Industries Inc. (NYSE:WOR -- $64.17) operates as a metals manufacturing company. Worthington will report its Q3 earnings of 2021 before the bell today.

American Well Corp. (NYSE:AMWL -- $19.01) engages in the provision of online healthcare services. American Well will report its Q4 earnings of 2020 after the close today.

GrowGeneration Corp. (NASDAQ:GRWG -- $52.17) owns and operates retail hydroponic and organic gardening stores in the United States. GrowGeneration will report its Q4 earnings of 2020 after the close today.

H.B. Fuller Co. (NYSE:FUL -- $58.18) formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. H.B. Fuller will report its Q4 earnings of 2020 after the close today.

KB Home (NYSE:KBH -- $43.36) operates as a homebuilding company in the United States. KB Home will report its Q1 earnings of 2021 after the close today.

RH (NYSE:RH -- $508.50) operates as a retailer in the home furnishings. RH will report its Q4 earnings of 2020 after the close today.

Shoe Carnival Inc. (NASDAQ:SCVL -- $54.44) operates as a family footwear retailer in the United States. Shoe Carnival will report its Q4 earnings of 2020 after the close today.

Looking ahead to tomorrow, another round of jobless claims will kick things off on Thursday, along with the latest gross domestic product (GDP) reading. All economic dates listed here are tentative and subject to change.

Published on Mar 19, 2021 at 10:24 AM
Updated on Mar 23, 2021 at 4:43 PM
  • Analyst Update
The options pits are brimming with bullish activity today. So far, 26,000 calls have already crossed the tape, which is 15 times the average intraday amount, and nearly three times the number of puts traded. Most popular is the March 280 call, followed by the 300 call in the same monthly series, both of which expire at the end of the day.
Published on Mar 23, 2021 at 10:40 AM
Updated on Mar 23, 2021 at 4:42 PM
  • Analyst Update
So far, 39,000 calls have crossed the tape, which is three times the intraday average, and nearly four times the number of puts traded. Most popular is the weekly 3/26 540-strike call, followed by the 535-strike call in the same series, with news positions being opened at both. Buyers of these options foresee more upside for NFLX by the end of the week, when contracts expire.
Published on Mar 23, 2021 at 10:17 AM
Updated on Mar 23, 2021 at 4:27 PM
  • Buzz Stocks
Call traders are piling on Microsoft stock in response to the buyout talks. Already, 41,000 calls have exchanged hands -- triple the amount typically seen at this point -- versus 12,000 puts. 
Published on Mar 23, 2021 at 3:37 PM
Updated on Mar 23, 2021 at 3:59 PM
  • Quantitative Analysis

The shares of Snap Inc (NYSE:SNAP) are falling this afternoon, last seen down 4.1% at $55.79. The tech giant recently pulled back from a Feb. 24, all-time high of $73.59, but it still carries an astounding 424% year-over-year lead. Another reason why traders shouldn't look away just yet is that the equity's recent dip has placed shares near a historically bullish trendline, which could help SNAP move back toward its record in the near future.

Digging deeper, Snap stock just came within one standard deviation of its 80-day moving average, after a lengthy period above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, at least six similar signals have occurred in the past three years. The security enjoyed a positive return one month later in 60% of those cases, averaging a 6.8% gain for that period. From its current perch, a move of similar magnitude would put SNAP over the $59 mark, closer to its February high.

SNAP 80 Day

 A shift in the options pits could keep the wind at the equity's back, too. This is per SNAP's Schaeffer's put/call open interest ratio (SOIR), which sits in the 98th percentile of its annual range. In simpler terms, short-term traders have rarely been more put-biased.  

Plus, SNAP options can be had at a bargain at the moment. The equity's Schaeffer's Volatility Index (SVI) of 55% sits higher than only 16% of all other readings from the past year. This means options players are pricing in lower-than-usual volatility expectations right now.

Finally, Snap stock's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 91 out of 100, indicating the security has exceeded volatility expectations during the past year -- a good thing for options buyers.

Published on Mar 23, 2021 at 1:16 PM
  • Buzz Stocks

What Exactly Does Hormel Foods Stock Have to Offer?

by Schaeffer's Digital Content Team
 
Published on Mar 23, 2021 at 10:23 AM
  • Analyst Update
 
Published on Mar 23, 2021 at 10:19 AM
  • Buzz Stocks

The shares of Southwest Airlines Co (NYSE:LUV) are inching higher this morning, following an upgrade from Argus. The analyst upped its rating on Southwest Airlines to "buy" from "hold," calling it "one of the best low-cost carriers," and citing pre-pandemic earnings stability and strong management. LUV is up 0.1% at $59.50 at last check. 

LUV has rallied since early this year, bouncing off the 80-day moving average in late January. The stock is now up over 27.6% in 2021, with additional support at the 20-day moving average guiding shares higher. 

Coming into today, the analyst sentiment surrounding LUV was resoundingly optimistic, with all but one of the 15 analysts in coverage calling the stock a "buy" or better. The 12-month consensus price target of  $60.89, meanwhile, sits at a 2.2% premium to last night's close. 

Now looks like a great time to get in on LUV's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 36% stands higher than all but one percent of readings from the past year. This implies options traders are pricing in very low volatility expectations for the equity right now. 

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