Domino's Pizza Stock Eyes Best Day Ever After Earnings

Domino's reported better-than-expected earnings, revenue, and same-store sales

Managing Editor
Feb 20, 2020 at 10:30 AM
facebook twitter linkedin

A big earnings winner this morning is Domino's Pizza, Inc. (NYSE:DPZ). The restaurant company reported adjusted fourth-quarter earnings of $3.13 per share on $1.15 billion in revenue, both of which topped analyst expectations. Same-store sales also roared past estimates, and the company attributed faster delivery and new promotions as catalysts behind the upbeat corporate report. 

In response, Domino's Pizza stock is up 23.6% to trade at $367.80 this morning, blowing past its April 24 record high of $301.78. DPZ is on track for a seventh straight win and its best single-session gain ever. But even prior to today's breakout, the shares had support in place at their 200-day moving average.

A short squeeze could be fueling additional gains. Short interest fell almost 7% in the most recent reporting period to 3.75 million shares. However, this still accounts for a healthy 9.2% of DPZ's total available float, and 5.5 times the average daily trading volume. 

In the options pits, calls have been dominant. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock boasts a 10-day call/put volume ratio of 2.06 that ranks in the elevated 84th annual percentile, meaning this rate of call buying relative to put buying is unusual.

Echoing this is the equity's Schaeffer's open interest ratio (SOIR) of 0.72, which ranks in the low second percentile of its annual range. In other words, short-term options players have rarely been more call-heavy during the last 12 months. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners