Options Traders Blitz Sinking Sonos Stock

SONO put traders may be liquidating their front-month positions today

by Karee Venema

Published on Sep 11, 2018 at 10:33 AM
Updated on Jun 24, 2020 at 10:16 AM

In its first earnings report as a publicly traded company, consumer electronics firm Sonos Inc (NASDAQ:SONO) recorded a fiscal third-quarter loss of 45 cents per share on $208.4 million in revenue. Analysts, meanwhile, were expecting a slimmer loss of 22 cents per share on $208 million in sales. Against this backdrop, SONO stock has plunged 19.2% to trade at $17.03, comfortably on track for its worst day to date.

Looking closer at the charts, SONO shares opened for their Aug. 2 Nasdaq debut trading at $16. The stock fell to a record low of $15.51 that day -- still above the company's $15 per share initial public offering, though -- and surged to an all-time peak of $21.48 on Aug. 3.

Options traders have been quick to react to today's bear gap, with 5,923 puts and 4,873 calls on the tape so far -- 12 times what's typically seen at this point in the day. Most active are the September 17.50 and 20 puts, where it looks like speculators may be liquidating their positions.

Outside of the options pits, sentiment is mixed on the Wall Street newcomer. Of the five analysts covering SONO stock, two maintain a "buy" rating, compared to three "holds." Meanwhile, the average 12-month price target of $22.83 is a 28.5% premium to current trading levels.


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