MeetMe Inc (MEET) Reiterates Guidance, Setting Options Pits Ablaze

MeetMe Inc (MEET) is pushing back against claims that its revenue stream is in danger

Aug 17, 2016 at 11:32 AM
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Yesterday, MeetMe Inc (NASDAQ:MEET) tumbled after a report claimed 90% of the company's revenue was in danger due to the mobile app's tendency toward sexually explicit and drug-related content. In fact, since hitting a roughly five-year high of $8.11 last week, the social media stock was down 38% as of last night's close. Today, however, MEET is bouncing back after the firm reiterated its third-quarter and full-year guidance.

According to Roth Capital, this move suggests the company's "relationships with ad networks and brands remains healthy." As such, MEET shares have jumped 7.8% to trade at $5.41, lifting their year-to-date lead back up to 51%.

The stock's volatility in recent sessions has had a profound impact on its options pits. Option volume hit an annual high yesterday, while total open interest also settled at its highest level in 12 months. Today, MEET's intraday options volume is again running hot, registering in the 99th percentile of its annual range -- with the stock still on the short-sale restricted list.

By the numbers, over 3,300 contracts are on the tape, more than tripling the expected intraday amount. The in-the-money September 6 put is seeing the most activity, and International Securities Exchange (ISE) data confirms at least some contracts have been sold to close.

Longer term, put buying has been en vogue. In fact, MeetMe Inc's (NASDAQ:MEET) 50-day ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio sits at an annual high of 0.93. Along similar lines, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.41 outranks all other comparable readings recorded in the past year.

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