Hasbro Stock Set to Soar on Unexpected Earnings Beat

Options traders have been call-skewed toward HAS

Managing Editor
Jul 23, 2018 at 9:19 AM
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Shares of Hasbro, Inc. (NASDAQ:HAS) are up 12.3%  in electronic trading, after the company this morning posted second-quarter earnings and revenue beats. The toymaker also said while it does not expect to fully reclaim the revenue lost from Toys 'R' Us this past calendar year, it believes it will move past the liquidation by 2019.

From a broader perspective, Hasbro stock has been choppy on the charts, more recently attempting to rebound following a late-April post-earnings plunge. More recently, the stock's 30-day moving average has served as a floor for the shares. Heading into today's trading, HAS is sitting 3.3% above its breakeven year-to-date, based on last Fridya's close at $93.93. 

Digging into options, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows HAS stock's 50-day call/put volume ratio of 1.22 ranks in the 77th percentile of its annual range. This lofty ratio suggests calls have been purchased over puts at a faster-than-usual clip during the past 10 weeks.

Echoing this, the toymaker's short-term traders are more call-skewed than usual, with HAS' Schaeffer's put/call open interest ratio (SOIR) of 0.66 ranking in the 38th annual percentile. This indicates that near-term call open interest outweighs put open interest by a wider-than-usual margin right now.

Those purchasing near-term options are in luck, too. Hasbro stock's Schaeffer's Volatility Index (SVI) of 32% ranks in the 27th annual percentile, indicating short-term options are pricing in relatively low volatility expectations at the moment.


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