Pure Storage stock is headed for its worst day since November
Pure Storage Inc (NYSE:PSTG) stock is moving sharply lower today, despite the data storage name reporting generally upbeat second-quarter results, including better-than-anticipated earnings and revenue.
Though the company maintained its full-year revenue outlook, it lowered its guidance for subscription-as-a-service (SaaS) related total contact value, while FactSet reported that its operating income guidance came in below expectations. It's also worth noting that sector peer NetApp (NTAP) is plummeting despite strong results as well.
At last glance, PSTG was down 12% to trade at $52.53 and headed for its worst daily percentage loss since November. The $50 level has been a firm line of support since a 25% post-earnings pop on Feb. 29 and this area also coincides with its ascending 200-day moving average. Year to date, the equity is up 47.5%.
Call traders appear to be buying in on the dip, as 6,801 calls have been exchanged so far today in comparison to 1,141 puts. This overall volume already represents 2.5 times PSTG's average daily amount. The October 55 call is the most popular, with new positions being bought to open.