Profit Warnings Wallop Ryanair Holdings plc (RYAAY)

Ryanair Holdings plc (ADR) (RYAAY) is one of several travel stocks tumbling after last week's "Brexit" vote

Jun 27, 2016 at 10:28 AM
facebook X logo linkedin

Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) shares are taking a nosedive, amid warnings that last week's "Brexit" vote will weigh on the profits of airlines. Also, the travel stock received a downgrade to "hold" from "buy" at Evercore ISI, as well as price-target cuts at Citigroup and Credit Suisse. At last check, RYAAY is down 14% at $66.72, and fresh off an annual low of $66.09 -- to the delight of bearish options traders.

During the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.70 put options for every call -- albeit on relatively low trading volume. That trend is accelerating today, with puts crossing at nine times the usual intraday rate, and buy-to-open activity detected at the August 65 put. In other words, these put buyers foresee even lower lows for RYAAY through back-month expiration, at the close on Friday, Aug. 19.

Options traders aren't the only ones who have struck a bearish pose on the travel stock. Short interest exploded 69% during the most recent reporting period -- though, overall, less than 0.2% of RYAAY's float is shorted. Given this morning's downside gap, it's no surprise to see the airline stock on the short-sale restricted list. This may explain why put volume has picked up, as bears are seeking out alternative avenues to place pessimistic bets on the shares.

Technically, Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) has had a dismal past few weeks. As recently as June 3, the travel stock was trading at a record high of $89.67. Since then, however, the shares have tumbled nearly 26%.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI