Traders on Wrong Side of Xerox Earnings Win

The firm reported a third-quarter earnings beat, and upwardly revised full-year profit outlook

Oct 29, 2019 at 10:29 AM
facebook X logo linkedin


Xerox Holdings Corp (NYSE:XRX) is gaining 15% this morning to trade at $35.41, thanks to the company's third-quarter earnings beat and upwardly revised full-year profit outlook. This price action has XRX stock jumping above the 200-day moving average and testing the site of the July earnings bear gap. Xerox had moved lower following the last two earnings releases, and it appears options traders were betting on a similar move this time.

To be more specific, the equity's Schaeffer's put/call open interest ratio (SOIR) stands at 2.68, which ranks in the 100th annual percentile. This shows that traders targeting options that expire within three months are unusually put-heavy at the moment, hinting at bearish expectations.

What's more, peak open interest in the front-month November series rests at the 30-strike put. Data shows mostly buy-to-open activity here, confirming that a number of traders were betting on a pullback from XRX in the short term.

To be sure, these aren't the only skeptics, since short interest is still elevated on Xerox. By the numbers, the 7.76 million shares sold short represent nearly four days' worth of buying power, based on average daily trading volumes. This leaves the potential for short covering, which could help the shares keep rising on the charts.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI