General Mills Stock Moves Higher After Earnings

The stock is brushing off a lower-than-expected annual forecast

Deputy Editor
Jun 29, 2022 at 10:15 AM
facebook twitter linkedin


The shares of General Mills Inc (NYSE:GIS) are up 4.2% to trade at $73.23 at last glance, after the Cheerios maker reported better-than-expected fiscal fourth-quarter results. The company lowered its full-year forecast, however, citing rising costs and weaker demand. 

On the charts, GIS isn't trading too far from its mid-May record high of $73.99, and stands  21.4% higher year-over-year. Plus, over the past couple months, the $65 level has provided a floor for pullbacks. 

Puts have been much more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), General Mills stock's 10-day put/call volume ratio of 9.41 ranks higher than 96% of readings from the past year. 

Some of that pessimism could be unwinding, however. So far today, 2,771 calls and 1,726 puts have crossed the tape, with overall volume running at nine times what's typically seen. The July 72.50 call is the most popular by far, followed by the 75 call in the same monthly series. 

Analysts have yet to chime in, but there is plenty of room for upgrades. Of the 11 in coverage, seven carry a "hold" or worse rating on General Mills stock. 

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners