Qihoo 360 Technology Co. Ltd. (QIHU) Pre-Earnings Call Volume Swells

Qihoo 360 Technology Co Ltd (QIHU) is scheduled to report earnings on Monday


Published on Mar 6, 2015 at 11:15 AM
Updated on Apr 20, 2015 at 5:32 PM

Ahead of next Monday's earnings report, Qihoo 360 Technology Co Ltd (NYSE:QIHU) is flying up the charts. At last check, shares of the cybersecurity firm have soared 6.5% to hover near $50.47 -- putting them on track for their first daily close north of the half-century mark since Feb. 24. Meanwhile, this price action is luring option traders to the table.

Specifically, calls are crossing at five times the expected intraday rate, and more than triple the number of puts on the tape. New positions are being purchased at the weekly 3/6 50 and 51 strikes, as speculators gamble on QIHU settling above the strikes at tonight's close, when the weekly series expires. Meanwhile, the most active option is the slightly longer-term March 50 call, which is also seeing some buy-to-open activity, with these players banking on post-earnings upside.

Technically speaking, QIHU hasn't been anything to write home about. Even after factoring in today's rally, the equity is still sitting at a roughly 58% year-over-year deficit. Similarly, the shares have underperformed the broader S&P 500 Index (SPX) by 24 percentage points over the last month.

Not surprisingly, option bears have taken control of Qihoo 360 Technology Co Ltd's (NYSE:QIHU) options pits -- today's action notwithstanding. The stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at an annual peak of 0.93.

Daily Chart of QIHU since March 2014

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Spotify Stock Shaky as Amazon Eyes Podcasts
Amazon's interest in podcasts puts SPOT in focus
AZO Shifts Higher After Earnings
AutoZone's fiscal third-quarter results beat estimates
One New Company Looks Ready To Clean Up On China’s Lithium Mess
Click to continue to advertiser's site.