Coach Inc, Opko Health Inc. Please Options Traders With Post-Earnings Moves

Coach Inc (COH) is lower after earnings, while Opko Health Inc. (OPK) is higher

Alex Eppstein
Aug 9, 2016 at 10:38 AM
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Retail stock Coach Inc (NYSE:COH) and healthcare firm Opko Health Inc. (NASDAQ:OPK) have taken sharp swings in the aftermath of their earnings reports. Below, we'll take a closer look at the results, the stocks' moves on the charts, and how options traders may be reacting.

COH's per-share profit came in ahead of the consensus estimate, but its quarterly sales missed the mark. Out of the gate, the stock tumbled 3.5%, but was last seen sitting on a more modest loss of 0.8%, at $41.12 -- benefiting from round-number support at the $40 level. As it currently stands, the shares have advanced a gaudy 25.6% year-to-date.

Meanwhile, it looks like options traders have been betting on -- or bracing against -- a sharp downside move for Coach Inc. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio stands at a 12-month high of 1.45. On the other hand, the brokerage crowd is very bullish toward COH, with nearly two-thirds of covering analysts handing out a "strong buy" recommendation.

Switching gears, OPK is rallying after the company swung to a surprise second-quarter profit. At last check, the stock has added 1.3% at $10.24, possibly suggesting a breakout from its weeks-long consolidation pattern near the round-number $10 area -- which corresponds with the shares' year-to-date breakeven.

A decisive move into the double digits would likely please call buyers. Over the last two weeks at the ISE, CBOE, and PHLX, traders have bought to open 10 times as many Opko Health Inc. calls as puts. Then again, nearly one-fifth of the stock's float is sold short -- or more than a month's worth of pent-up buying power, at OPK's average volumes -- so it's possible short sellers have been hedging with protective calls.

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