Campbell Soup Stock Cooling Quick After Earnings Miss

Options traders are chiming in after the event

Deputy Editor
Jun 9, 2021 at 10:50 AM
facebook twitter linkedin

The shares of Campbell Soup Company (NYSE:CPB) are down 8.6% to trade at $44.90 at last check, after the company's fiscal third-quarter earnings and revenue came in below expectations, as inflation and rising supply chain costs weighed. Plus, the food name lowered its full-year guidance due to higher costs related to raw materials and transportation.

Today's drop has CPB nearing its Sept. 8 annual low of $44.54, with the stock earlier trading as low as $44.73. Plus, the equity has fallen below a slew of short- and long-term moving averages as well as its year-to-date breakeven.

Analysts are overwhelmingly bearish on CPB, with eight of the nine in coverage carrying a "hold" or worse rating on the stock. Meanwhile, short interest makes up an impressive 9.9% of the security's available float, and would take over nine days to cover at Campbell Soup stock's average pace of trading. 

There's plenty of pessimism in the options pits, as well. This is per CPB's 50-day put/call volume ratio of 1.20 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 97% of readings from the past year. This indicates long puts being picked up at a much faster-than-usual rate, relative to the last 12 months. 

Today, options traders have been quick to get in on the post-earning action, with options volume running at 15 times what's typically seen. So far, 7,173 calls and 7,268 puts have crossed the tape. The most popular is the November 55 call, where new positions are being sold to open. 


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