Guess? Stock Surges After Surprise Quarterly Report

Options bulls are piling on the clothing retailer

Deputy Editor
Sep 2, 2020 at 10:19 AM
facebook X logo linkedin


Apparel concern Guess?, Inc. (NYSE:GES) threw its hat into the earnings ring this morning, reporting a smaller-than-expected second-quarter loss. Revenue came in better than Wall Street's estimates, while the company also announced it will reinstate its dividend. As a result, the shares of GES are surging, up 15.7% to trade at $13.91 this morning.

On the charts, GES rapidly recovered after bottoming out at a 17-year low of $3.64 on March 18, more than tripling to $13.88 by June 5. Still, the equity is facing a 37.1% year-to-date-deficit, but just breached pressure from its 180-day moving average -- a trendline that's acted in such a capacity since late February. Now, GES is facing off with its 320-day moving average.

Meanwhile, Guess? stock calls have doubled puts in the last 10 days -- 2,533 calls versus 1,094 puts. Despite this, a massive appetite for puts among short-term traders is evident, according to the security's Schaeffer's put/call open interest ratio (SOIR) of 6.32, which ranks higher than all but 2% of readings from the past year. 

Today's options pits are rather bullish, however, with over 3,000 calls crossing the tape in the first hour of trading alone -- 40 times the intraday average and volume pacing in the 100th percentile of its annual range. The most popular option is the September 12 call, followed by the 15 call from the same series.

Options traders should note that Guess? stock's Schaeffer's Volatility Index (SVI) of 141% ranks in the 31st percentile of its annual range. This means that near-term options traders are pricing in relatively low volatility expectations, a boon for premium buyers.
 
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI