Retail Stock Surges After Online Shopping Leads to Earnings Beat

The equity is up over 56% in the last six months

Digital Content Manager
Oct 29, 2020 at 10:00 AM
facebook X logo linkedin

The shares of Tapestry Inc (NYSE:TPR) are up 10.3% at $21.31 this morning, after the parent company of brands including Coach, Kate Spade and Stuart Weitzman reported better-than-expected fiscal first-quarter earnings of $0.58 per share. The fashion giant attributed the positive results to a high demand for luxury goods in China, as well as a jump in online shopping.  

Digging deeper, Tapestry stock has been climbing up the charts since dropping to an April 2, 17-year low of $10.18. Shares have more doubled after hitting that bottom, with support from the equity's 10-day moving average over the last several weeks. And while the $22 level seems to have recently emerged as a ceiling, TPR has still gained 79.2% in the last three months.

Analysts are mostly hesitant toward the security, however, with 11 of the 20 in coverage carrying a tepid "hold" rating, and the remaining nine sporting a "strong buy." Meanwhile, the 12-month consensus target price of $22.48 is a 2.8% discount to the stock's current perch.

In the options pits, it seems there's been an uptick in short-term put buying. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.07, which sits higher than 99% of readings from the past year, suggesting these short-term option traders have rarely been more put-biased. 

This hasn't been the case so far today, however, with options bulls surrounding the Coach parent. Within the first hour of trading, over 2,516 calls have crossed the tape -- five times the intraday average -- compared to just 183 puts. Most popular by far is the weekly 10/30 24-strike call, where it looks like positions are being bought to open. This suggests that these bulls are speculating on even more upside for the equity before these positions expire tomorrow, Oct. 30. 

Now certainly looks like an ideal time to take advantage of TPR options. The security's Schaeffer's Volatility Index (SVI) of 75% sits in the relatively low 27th percentile of all other annual readings, meaning the stock sports attractively priced premiums at the moment.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI