Options traders are crowding both DIS, PLTR after each company's lackluster earnings
Stocks are higher across the board today, but don't tell Walt Disney Co (NYSE:DIS) and Palantir Technologies Inc (NYSE:PLTR). The blue-chip and software stock are down 10% and 14.7%, respectively, after each company reported lackluster first-quarter earnings this morning.
DIS was last seen trading at $105.07, on track for its worst single-session drop since November 2022. While the entertainment giant reported fiscal second-quarter earnings and a fiscal-year guidance that topped expectations, the stock is sharply lower after revenue fell short of estimates. Disney also expects a loss within its direct-to-consumer entertainment business this quarter.
The shares are testing their 100-day trendline today, a moving average that now coincides with the site of its post-earnings bear gap from early February.
At last check, over 330,000 calls have changed hands, volume that's 11 times the average intraday amount and nearly double the number of puts traded. The June 115 call is the most popular, with buy-to-open activity detected.
Palantir stock is trading at $21.57 at last check, on track for its worst single-session drop since May 2022. First-quarter earnings and revenue exceeded analyst expectations, but Palantir stock is taking a hit because the company's full-year guidance missed estimates. Despite the bear gap, the shares are up still up 25% in 2024 and are finding support at their 100-day moving average.
Already today, 655,000 calls have been traded, compared to 325,000 puts. Weeklies are popular, with the 5/10 22-strike call and 21-strike put the most popular.