Schaeffer's Top Stock Picks for '25

2 Bank Stocks Moving Lower After Earnings

Options traders are targeting MS and PNC with gusto today

Managing Editor
Jan 16, 2024 at 10:02 AM
facebook X logo linkedin


Bank earnings -- and earnings season in general -- kicked off on Friday and continued to start the holiday-shortened week. In focus today are Morgan Stanley (NYSE:MS) and PNC Financial Services Group Inc (NYSE:PNC), with their stocks making moves in opposite directions. 

MS is down 1.7% to trade at $88.14, after the company's adjusted fourth-quarter earnings of $0.85 cents per share fell short of the consensus estimates of $1.01 per share. The whiff comes after Morgan Stanley was hit with $286 million in special assessment fees. The stock was up premarket due to fourth-quarter revenue topping forecasts, but turned lower at the open. The equity remains just below its year-over-year breakeven level. 

Right out of the gate, over 8,370 puts have changed hands, volume that's already triple the average intraday amount. The January 85 put that expires on Friday is most popular, while new positions are being bought to pen at the weekly 1/26 86-strike put. 

PNC was last seen down 2.9% to trade at $144.54, despite the regional bank's adjusted fourth-quarter earnings of $3.16 per share beating out the $2.90 per share estimates. Instead, what's weighing on the stock is first-quarter net interest income guidance falling short of consensus. The shares are now down over 12% in the last 12 months.  

PNC's normally-quiet options pits have picked up the pace. Nearly 1,600 contracts have already been traded, volume that's double the average intraday amount. The weekly 1/26 150-stirke call is the most popular, with new positions being bought to open.

 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter