Wayfair Stock Falls to Three Year Low

Wayfair's earnings and revenue missed their mark

Deputy Editor
Feb 28, 2020 at 1:14 PM
facebook twitter linkedin


Wayfair Inc (NASDAQ:W) reported its quarterly earnings this morning and the results aren't pretty. The furniture company reported an adjusted loss of $2.80 per share, larger than the anticipated $2.65 loss. And while Wayfair increased fourth quarter sales profits, fourth-quarter revenue also missed its mark.

In response, W stock dropped 24.2% out of the gate to open at $53.31, a new three-year low. Currently, Wayfair stock has pared some of those losses to trade at $60.78. This extends the equity's losses to a sixth-straight session, and brings its losses now to 22% year-to-date. Analysts were already bearish heading into today, with 15 out of 24 considering "hold" or "strong buy" ratings.

In the options pits, puts are favored. W stock shows a Schaeffer's put/call open interest ratio (SOIR) of 2.11, ranking in the 92nd percentile.In other words, short-term options players have rarely been more put-heavy during the last 12 months.  However, a word of warning; the security's Schaeffer's Volatility Index (SVI) of 1.08 stands higher than 93% of all other readings from the past year, meaning volatility expectations are nearing annual high levels. 

 

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