Estee Lauder Stock Rises Amid 'Possible Shakeup'

Calls have been very popular in the options pits of late

Deputy Editor
May 8, 2023 at 11:08 AM
facebook twitter linkedin

Estee Lauder Companies Inc (NYSE:EL) is in the spotlight, after news that billionaire activist investor Nelson Peltz is exploring a "possible shakeup" at the company, according to the New York Post, which could include replacing the current CEO or an eventual sale. At last glance, EL was up 0.9% at $207.52. 

On the charts, the security is having a hard time recovering from its May 3 post-earnings plummet of 17.3%. Plus, the $210 level appears to have swooped in as a line of pressure. Year-to-date, the equity is down 17%. 

Options bulls seem to be viewing the bear gap as an attractive entry point, as EL's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 92% of readings from the past year. 

It's also worth noting that EL's 14-day relative strength index (RSI) of 21 sits firmly in "oversold" territory. In other words, the shares are overdue for a short-term bounce. 



Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!