Tiffany Stock Dips Amid More LVMH Deal Talks

The equity is up down 13.8% year-to-date

Deputy Editor
Sep 21, 2020 at 10:20 AM
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French Luxury giant Louis Vuitton SE's (LVMH) $16 billion dollar deal to buy Tiffany & Co. (NYSE: TIF) could be cleared by European Union regulators by as soon as Oct. 26. Despite earlier this month pulling out of the deal after Tiffany requested to delay the acquisition until year's end, LVMH looked for regulatory approval to combat claims that it purposely delayed antitrust proceedings. 

In response to the weekend update, TIF is down 1.1%, last seen trading at $115.40. Tiffany stock experienced a massive bear gap on Sept. 8 that sent the stock back towards familiar support at the $112 level. Since then, the shares' 10-day moving average has kept a tight lid on any breakouts. Longer term, TIF is down 13.8% year-to-date.  

Still, Tiffany's options pits are home to some noteworthy bullish action. In fact, TIF sports a 50-day call/put volume ratio of 2.20 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the slightly lofty 78th percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets of late.

Lastly, The equity's Schaeffer's Volatility Scorecard (SVS) stands at just 16 out of 100. This means the security has tended to flounder on volatility expectations during the past year, which could prove risky for option buyers. 


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