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
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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.

 

 

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