Lowe's Stock Rises on Profit Beat

Options traders are changing their tune after the event

Deputy Editor
Aug 22, 2023 at 10:44 AM
facebook X logo linkedin


Lowe's Companies Inc (NYSE:LOW) announced better-than-expected second-quarter profits of $4.56 per share before the bell this morning, though revenue of $24.96 billion just barely missed estimates. Fellow home improvement name Home Depot (HD) reported strong earnings last week as well, giving Wall Street hope regarding consumer sentiment

At last glance, LOW is up 2.9% at $223.86 and earlier traded as high as $227.28. Today's pop has the stock jumping back above its 60-day moving average, which provided support at the beginning of this month. Year-to-date, the equity is up 12.6%. 

Options bearstargeted LOW ahead of the event, per the security's 10-day put/call volume ratio of 3.12 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 94% of readings from the past year, showing puts being picked up at much faster-than-usual rate. 

Today, however, bulls are in control. So far, 13,000 calls have crossed the tape -- 11 times the amount typically seen at this point -- in comparison to 6,427 puts. The weekly 8/25 235-strike call is the most active contract, followed by the 230-strike call in the same series, with new positions being opened at both. 

Analysts have yet to chime in on the news. Of the 25 in coverage, 13 carry a "buy" or better rating, with 12 a "hold," and one "strong sell." The 12-month consensus price target of $238.38 is a 6.1% premium to current levels. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI