Bettors Busy as Box, Inc. (BOX) Crumples Under Earnings

Box Inc (BOX) is sharply lower following its inaugural earnings report

Digital Content Group
Mar 12, 2015 at 10:42 AM
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Cloud concern Box Inc (NYSE:BOX), which went public in late January, is getting decimated following its first-ever quarterly earnings report. However, the firm claims analysts miscalculated the number of BOX shares, resulting in inflated estimates. At last check, the stock was 15.6% lower at $17.33, and has been placed on the short-sale restricted list. Options volume, meanwhile, has ramped up to 11 times the usual intraday rate -- with calls and puts changing hands near parity.

BOX's most active option is the March 17.50 call, which is seeing buy-to-open activity. By initiating long positions here, speculators anticipate the shares will bounce back above $17.50 by the close next Friday, when front-month options expire. In its short history as a publicly traded entity, BOX has never ended a week below this level.

Taking a step back, traders have preferred BOX calls over puts in recent weeks. Specifically, the security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio registers at 1.59. However, as recently as March 2, this ratio was as high as 6.90, suggesting traders' appetite for calls relative to puts has waned.

Meanwhile, analysts are decidedly skeptical toward Box Inc (NYSE:BOX). All of the brokerage firms tracking the shares have handed out "hold" evaluations.


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