Upbeat Quarterly Results Boost Workday Stock

Options bulls are blasting the equity in response

Digital Content Manager
Nov 30, 2022 at 10:58 AM
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Workday Inc (NASDAQ:WDAY) is up 11.5% to trade at $159.78 this morning after the software name shared better-than-expected third-quarter earnings and revenue. What's more, the company hiked its outlook and revealed a share repurchase program of up to $500 million. 

The brokerage bunch is having mixed reactions, however. While Barclays raised its price target to $203 from $198, five firms lowered their objectives, including Stifel to $185 from $220. Analysts lean optimistic on WDAY, though, with 22 of the 30 in question carrying a "buy" or better rating.

Today's bull gap has shares breaking above their 80-day moving average, after the equity slipped below this trendline in mid-November. The $165 region -- which has been acting as a ceiling since September -- is still pressuring the stock, which sports a 41.7% year-to-date deficit. 

Drilling down to today's options activity, 12,000 calls and 11,000 puts have crossed the tape, which is nine times what's typically seen at this point. Most popular is the 12/2 160-strike call, followed by the 170-strike call in the same weekly series, with positions being opened at both.


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