Options Traders, Analysts Blast Workday Stock After Earnings

Options volume is running at 11 times the intraday average

Digital Content Manager
Mar 1, 2022 at 10:30 AM
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Workday Inc (NASDAQ:WDAY) is up 5.7% at $242.12 this morning, after the software concern reported better-than-expected fourth-quarter earnings of 78 cents per share, as well as a revenue beat. What's more, the company raised its fiscal 2023 subscription guidance to between $5.53 and $5.55 billion, which signifies 22% year-over-year growth. 

The brokerage bunch is already chiming in on the results. The equity earned at least four price-target hikes this morning, including one from Cowen and Company to $310 from $300. It also attracted a price-target cut from Stifel to $300 from $320. Analysts lean bullish towards WDAY, with all 27 in question carrying a "buy" or better rating. 

Short-term options traders are not as optimistic. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.63, which stands higher than 96% of readings from the past year. Should some of this pessimism start to unwind, shares may surge even higher.

The equity's usually quiet options pits are buzzing with activity today. So far, 4,458 calls and 4,526 puts have already crossed the tape, or 11 times what is typically seen at this point. Most popular is the 3/4 250-strike call, followed by the 200-strike put in the same series.

Now pacing for its fourth-straight win, Workday stock is eyeing its first close above the 30-day moving average since November. Shares have staged an impressive bounce off the $205 level, but are still far off from their Nov. 17, all-time high of $307.81. Over the last three months, WDAY has shed 12.2%.


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