Apple Supplier Sees Post-Earnings Pop

Sentiment surrounding JBL is optimistic

Assistant Editor
Jun 19, 2020 at 10:38 AM
facebook twitter linkedin


Jabil Inc (NYSE:JBL) entered the earnings confessional this morning, reporting fiscal third-quarter earnings and revenue that beat analysts estimates. The Apple (AAPL) supplier's Diversified Manufacturing Services (DMS) unit saw a rise in revenue, though its Electronic Manufacturing Services (EMS) saw a slight decrease. As a result, the shares of JBL are up 5.1% to trade at $34.45.

Since its three-year low of $17.63 in mid-March, JBL is up around 95%. Jabil stock is set to close above its 20-day moving average for a fourth consecutive day, though it's yet again testing its footing at the 160-day moving average -- a trendline JBL has been dancing around for several weeks.

There is a strong preference for calls in the options pits. JBL's 50-day call/put volume ratio of 2.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 85th percentile of its annual range. This means that there is a healthier-than-usual appetite for long calls of late.

In the wake of this upbeat earnings report, 1,296 calls and 667 puts have crossed the tape so far today -- three times the intraday average. Leading the charge is the monthly  June 38 call, followed by the 33 call from the same series.

Analysts are mostly optimistic about Jabil stock. Of the seven in coverage, all but two rate it a "strong buy." Meanwhile, the 12-month consensus price target of $35.25 is a small 1.7% premium to current levels. 

 

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!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners