Conagra Brands Stock Brushes Off Upbeat Q3 Results

The company attributed the win to elevated demand during the pandemic

Deputy Editor
Apr 8, 2021 at 9:34 AM
facebook twitter linkedin

The shares of Conagra Brands Inc (NYSE:CAG) are down 3.4% at $35.99 at last check, following the company's fiscal third-quarter earnings report. The packaged food name behind Birds Eye, Healthy Choice, and Slim Jim, reported earnings of 59 cents per share -- a penny above Wall Street's estimates -- alongside a revenue beat. Conagra chalked this win up to elevated demand during the pandemic.

After bursting above pressure at the $35 level in early March, CAG quickly rose to a March 30 peak of $38.98 -- its highest level in nearly a year. However, the stock has since pulled back, finding a floor at the $37 region, which coincides with former pressure and its year-to-date breakeven. Year-over-year, Conagra stock sports a 22.3% lead.

In the options pits, the security's 50-day put/call volume ratio of 1.30 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than all but 1% of readings in its annual range. In other words, puts are being picked up at a faster-than-usual rate. 

Lastly, it's worth pointing out that Conagra stock ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 13 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making CAG a potential premium-selling candidate.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners