Nielsen Stock Jumps Higher on Earnings, Revenue Beat

Option traders were ramping up the bearish activity ahead of the event

Deputy Editor
Nov 2, 2020 at 12:03 PM
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Advertisement and marketing name Nielsen Holdings PLC (NYSE:NLSN) just surprised Wall Street with third-quarter earnings and revenue that beat analysts' estimates. The company also announced over the weekend that it would sell its consumer goods data business to private equity firm Advent International for $2.7 billion. The news has NLSN up 5.8% at $14.30 at last check, set to snap a three-day losing streak. 

The security is pacing for its first close north of its 50-day moving average in over a month. This trendline, which snuffed out a rally attempt last week, has served as both support and pressure since the equity's collapse back in late February. And while the stock has managed to put some distance between its current levels and its spring lows, thanks to a newfound floor at the $13 level, it's still staring at a roughly 29% year-to-date deficit, with pressure at the 180-day moving average looming overhead. 

Nielsen's typically quiet options pits are brimming with activity today. Amid low absolute volume, 466 calls and 1,789 puts have crossed the tape so far -- four times the intraday average. The most popular is the November 14 put, while the 16 call from the same monthly series is also getting attention. 

This penchant for puts has been the norm for Nielsen. This is per the equity's 10-day put/call volume ratio of 27.9 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 81% of readings from the past year, suggesting a healthier-than-usual appetite for long puts of late. 

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