Six Flags Stock on Track for Steep Post-Earnings Losses

The stock is erasing gains from its recent rally

Deputy Editor
Aug 11, 2022 at 10:52 AM
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Six Flags Entertainment Corp (NYSE:SIX) is plummeting today, down 21.6% to trade at $20.25 at last check, after the amusement park name posted lower-than-expected second-quarter earnings and revenue. A drop in amusement park visitors weighed on results, with park attendance falling to 6.7 million from last year's 8.5 million. 

Before today, SIX closed 10 of its last 11 trading sessions higher. The stock could give most of these gains back today, however, and is now down 51.9% year-to-date. A floor at the $20 level has kept losses in check since mid-June, and appears to be providing support today as well. 

Options traders were much more bullish than usual leading up to today. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SIX's 50-day call/put volume ratio of 5.29 sits higher than 94% of readings from the past year. 

Today, overall options volume is running at seven times the intraday average, with 4,206 calls and 2,004 puts across the tape so far. The January 2023 35-strike call is the most popular, followed by the August 20 put. 

The majority of analysts are bullish in their ratings. Of the 10 in coverage, seven carry a "buy" or better rating. Meanwhile, short interest represents 9.2% of the stock's available float. 

 

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