Cal-Maine Foods Hatches Earnings Beat

Calls are popular in the options pits

Deputy Editor
Mar 30, 2020 at 10:14 AM
facebook twitter linkedin

Cal-Maine Foods Inc (NASDAQ:CALM) is up 0.5% this morning to trade at $42.61, after reporting a third quarter earnings beat. The fishing and farming company announced profits of 28 cents per share, higher than Wall Street's estimated 18 cents per share. Cal-Maine Foods' also reported revenue that came in above estimates. The company stated that they've had no disruptions so far due to the coronavirus pandemic, but the price volatility is due to the surrounding confusion and fear.

CALM stock has risen 22% for the month of March, despite coming off of a five-year low of $30.74 on March 12. Hovering around the $40, the 320-day moving average was putting a cap on a larger breakout attempt for the shares heading into today, but following this morning's bull gap the trendline has moved into the rear-view mirror for Cal-Maine Foods stock.

Coming into today, the one analyst in coverage is bullish on CALM stock -- sporting a "strong buy." Meanwhile, albeit amid absolute light volume, in the options pits, calls more than quadruple puts. CALM sports a 50-day call/put volume of 5.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 93% of readings from this past year. 


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