Put Buyers Take Notice as Criteo S.A. (CRTO) Falls on Apple News

Criteo SA (ADR) (NASDAQ:CRTO) is off sharply following Apple Inc.'s (NASDAQ:AAPL) ad-blocking decision

Jun 11, 2015 at 1:06 PM
facebook twitter linkedin


Online marketing specialist Criteo SA (ADR) (NASDAQ:CRTO) is getting hammered, after reports that Apple Inc.'s (NASDAQ:AAPL) upcoming version of iOS will allow iPhone users to block ads. At last check, CRTO has shed 12.1% to trade at $44.54, and options traders anticipate even more short-term downside.

With the stock on the short-sale restricted list, speculators have been setting their sights on CRTO puts, which are trading at 34 times the usual afternoon rate. Buy-to-open activity is transpiring at the now in-the-money June 45 put, suggesting option bears believe additional losses are in store between now and next Friday's close, when front-month contracts expire.

CRTO puts have been hot in recent weeks across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The equity's 10-day put/call volume ratio of 0.46 ranks higher than 78% of comparable readings from the past year.

Analysts have taken a far more bullish approach. In fact, six of seven analysts consider CRTO a "buy" or better, compared to one "hold" rating and not a single "sell." On top of that, the stock's average 12-month price target of $58.78 stands at a 32% premium to current levels.

It should be noted that, prior to today, Criteo SA (NASDAQ:CRTO) was a technical juggernaut. As of Wednesday's close, the shares had advanced nearly 49% year-over-year, and outperformed the broader S&P 500 Index (SPX) by 16.5 percentage points during the previous two months.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners