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Procter & Gamble Stock Soaring After Upbeat Q1 Earnings Report

The company also raised its full-year sales forecast

Deputy Editor
Oct 20, 2020 at 10:14 AM
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Shares of Procter & Gamble Co (NYSE:PG) are trading higher this morning, up 1.4% at $144.03, after the blue chip reported fiscal first-quarter earnings and revenue that easily beat Wall Street's estimates. Additionally, the company raised its full-year sales forecast, citing elevated demand for its household products as the catalyst for the decision. 

Cincinnati-based PG has been climbing the charts this year, quickly overcoming a volatile spring and its late-March lows, with some help from its 40-day moving average. In fact, Procter & Gamble stock reached a new all-time high of $145.87 last Friday, though the $145 level has worked as a ceiling since then. Longer term, the equity  has tacked on 15.7% in 2020.

Looking at options, there is plenty of opportunity for pessimism to unwind, with the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) coming in at 0.76. This reading ranks in the slightly elevated 78th annual percentile, meaning puts have been bought to open over calls at a faster-than-usual clip in the past 10 weeks. On the other hand, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.41 sits in the lowest percentile of all readings from the past year, suggesting that short-term options traders have been more call-biased of late.

Today's options pits are full of activity on both sides of the tape. In just the first hour of trading, over 5,000 calls and 2,500 puts have exchanged hands -- four times the intraday average, with volume pacing in the 99th percentile of its 12-month range. Most popular is the weekly 10/23 145-strike call, followed by the 146-call from the same series.

Now looks to be an attractive time to speculate on Procter & Gamble stock with near-term options, too. This is per the stock's Schaeffer's Volatility Index (SVI) of 23%, which registers in the 15th percentile of its annual range.

 

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