The Estee Lauder Companies Inc. (EL) Bears Emerge Amid All-Time High

Estee Lauder Companies Inc (EL) bears are betting on a quick turnaround

May 5, 2015 at 11:14 AM
facebook X logo linkedin

Estee Lauder Companies Inc (NYSE:EL) is 6.2% higher today at $88.73 -- and earlier touched a record high of $89.84 -- after the company posted strong fiscal third-quarter numbers. Now, options volume is through the roof, with contracts crossing at 17 times the expected intraday amount. One of the most popular strikes today is the May 87.50 put, which it appears is being bought to open. These traders expect EL to fall back below $87.50 by the close on Friday, May 15, when front-month options expire.

Ahead of earnings, calls were popular. In fact, the security's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.01 ranks higher than 92% of all readings from the past 12 months. In other words, call buying has been much more popular than usual, relative to put buying, during the past 10 weeks.

Looking to the brokerage bunch, most have taken a bullish stance toward EL. Specifically, 13 of 17 brokerage firms have "buy" or better ratings on the stock, compared to four "holds" and not a single "sell." However, with today's gains, the shares are knocking on the door of their average 12-month price target of $90.28, meaning future price-target hikes could be in the cards.

Before today's breakout, Estee Lauder Companies Inc (NYSE:EL) had been quiet on the charts for some time. Since early February, the equity churned between $80-$85, before this morning's bull gap.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI