Schaeffer's Top Stock Picks for '25

Ruby Tuesday, Inc. (RT) Puts Pop After Earnings Disaster

Ruby Tuesday, Inc. (RT) put options are hot, as the stock sits on the short-sale restricted list, following last night's earnings report

Oct 7, 2016 at 12:01 PM
facebook X logo linkedin


Restaurant stock Ruby Tuesday, Inc. (NYSE:RT) released its fiscal first-quarter earnings last night, posting an adjusted loss of 11 cents per share. RT's net loss widened after closing roughly 100 locations, while same-store sales fell 2.7%. In addition, the company said it will no longer offer fiscal guidance in order to focus on longer-term goals. Although RT's option pits typically see a low absolute volume, puts are taking off on a relative basis, trading at 16 times their usual intraday rate and in the 99th percentile of their annual range.

Meanwhile, RT's stock volume is on track to hit a new annual high, even as it sits on the short-sale restricted (SSR) list due to a post-earnings plunge. Today's selloff is likely a cause for celebration among short sellers, with short interest on RT up more than 19% over the last two reporting periods, and now accounting for 5.4% of its float. At the stock's average daily volumes, it would take roughly one week to buy back these bearish positions.

Drilling down into the technicals, Ruby Tuesday, Inc. (NYSE:RT) is down 13.4% at $2.17, after being halted earlier. Year-over-year, RT -- like several other food-industry stocks -- has struggled, with the shares down 67% over that time frame. What's more, the shares have been ushered lower by their 20-day moving average for the past few months, and earlier touched a seven-year low of $2.08.

Find out where the Dow lands right after the closing bell. Sign up now for Schaeffer's Market Recap

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?