Airbnb Stock Slips on Analyst Downgrade

There's a slight uptick in bearish options activity today

Deputy Editor
Oct 3, 2023 at 10:38 AM
facebook X logo linkedin


Shares of short-term home-rental concern Airbnb Inc (NASDAQ:ABNB) are 3.9% lower at $131.22 this morning after a bear note from KeyBanc Capital Markets. The brokerage firm downgraded ABNB to "sector weight" from "overweight" and removed its $160 price target, citing travel demand easing following the post-pandemic boom as well as an elevated average daily rate (ADR) risk. 

On the charts, ABNB just dipped below its 40-day moving average and the $135 level, both of which provided pressure during the stock's August dip. Already down nearly 4% to begin the new quarter, Airbnb stock still sports a 54% year-to-date gain.

Coming into today, covering brokerages were split on ABNB. Of the 28 firms in question, 13 still recommend a "buy" or better rating, while 15 say "hold" or worse. Additionally, short interest is moving higher -- up 30.1% in the most recent reporting period -- and the 25.64 million shares sold short make up 6.2% of the stock's available float. 

Today's options pits are experiencing a slight uptick in bearish activity, with the 6,062 puts traded already accounting for double the intraday average volume. This penchant for bearish bets was already in place, however, per the equity's 10-day put/call volume ratio of 2.03 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands in the 97th percentile of its annual range.

Echoing this, Airbnb stock's Schaeffer's put/call open interest ratio (SOIR) of 1.38, which ranks in the 81st percentile of annual readings, points towards a put-bias amongst short-term premium traders. Those looking to join these options players can do so for a bargain, as ABNB's Schaeffer's Volatility Index (SVI) of 36% stands higher than just 11% of annual readings -- an indicator that volatility expectations are low at the moment.

 

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