ETFC Stock Shifts Higher Despite Analyst Bear Note

Calls have been preferred in the options pits

Managing Editor
Feb 26, 2020 at 10:36 AM
facebook twitter linkedin

Just one week off the buyout that led to its best day since 2009E-Trade Financial Corp (NASDAQ:ETFC) is trading modestly higher, up 0.6% at $48.81, despite receiving a downgrade to "market perform" from "outperform" at Raymond James. Yesterday ETFC marked its third-straight loss on the charts, but remains well above its recently supportive 120-day moving average. Year-to-date, the equity has added 7%.

Heading into today analyst sentiment was mixed. Six covering firms sport a "hold" or "strong sell" rating, while the remaining five carry a "buy" or "strong buy" rating.

Short interest on the finance name fell 12.6% during the most recent reporting period, but still accounts for less than 2% of the stock's total available float. At ETFC's average pace of daily trading, it would take just over one day for shorts to buy back their bearish bets.

Digging a little deeper, a hefty presence of calls is evident in the options pits. This is per E-Trade stock's 10-day call/put volume ratio of 3.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 81st annual percentile, meaning calls have been purchased over puts at a faster-than-usual clip of late.



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners