Analysts Cheer Another Strong Quarter for Intuit

Today's pop in Intuit stock could be hurting short-term options traders

Aug 23, 2019 at 10:11 AM
facebook twitter linkedin

Intuit Inc. (NASDAQ:INTU) is trading higher out of the gate, after the tax software specialist posted a smaller-than-expected quarterly loss along with strong revenue and an upbeat outlook. The results have prompted a few analysts to respond bullishly. At least seven brokerage firms have upped their price targets, and the highest was to $320 from Guggenheim.

INTU shares were last seen at $290.45, up 5.4% on the day, already hitting an all-time high of $290.50. The equity closed 2018 right near the $197 level, putting the year-to-date gain above 45%, with the 50-day moving average acting as support in recent weeks. The earnings strength would just be more of the same for the security, as the last two quarterly reports sparked single-day gains of 6.7% and 6.8%.

However, near-term options traders were actually put-skewed on Inuit coming into today, based on the Schaeffer's put/call open interest ratio (SOIR) of 1.34. Not only does this show put open interest outweighs call open interest among contracts expiring within three months, but its annual percentile rank is 88, meaning such a preference for puts is rare. At the same time, peak open interest is at the September 300 call.

Most analysts already have "strong buy" ratings on Intuit, but there is room for more bullish attention going forward. For instance, six brokerage firms still have "hold" or "strong sell" ratings on the stock, and the average one-year price target of $278.74 is below current levels.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners