Negative Sentiment Surrounds Campbell Soup Stock

Put traders have been targeting CPB at full force

Deputy Editor
Mar 8, 2022 at 2:19 PM
facebook twitter linkedin


Campbell Soup Co (NYSE:CPB) is set to report fiscal second-quarter results before the open tomorrow, March 9, in which analysts anticipate the company to post profits of 69 cents per share. CPB is down 5.9% at $42.85 ahead of the event, sitting out today's broad-market rally. 

Ahead of the event, the options pits are pricing in a post-earnings swing of 8.9%, regardless of direction, which is higher than the average 4.8% move following Campbell Soup's last eight reports. Of these eight, four post-earnings sessions finished positive, including the two most recent. 

Today, options traders are overwhelmingly pessimistic, with 17,000 puts crossing the tape so far -- 16 times the intraday average -- in comparison to 3,993 calls. The weekly 3/11 45-strike put is the most popular today, where new positions are being bought to open, followed by the 47-strike put in the same weekly series. 

This bearish sentiment has been prevalent lately, per CPB's 10-day put/call volume ratio of 6.22 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other readings from the past year, underscoring an enormous preference for puts.  

It's not just options traders. Analysts are similarly negative, as all eight in coverage carry a "hold" or worse rating on the stock. Plus, short interest is up 10% in the most recent reporting period, and makes up 8.9% of Campbell Soup stock's available float. 

On the charts, CPB has struggled with recent pressure at the $46 level, an area that's only been toppled three times on a closing basis since June. Currently, the shares are down 1.3% year-to-date, and nearly 10% in the last 12 months. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners