Q2 STOCKS TO BUY

Holiday Toys List Lures Pre-Earnings Hasbro, Inc. (HAS) Bulls

Hasbro, Inc. (HAS) call options are extremely hot, after the toymaker's strong showing on Amazon's top holiday toys list

Oct 14, 2016 at 2:05 PM
facebook X logo linkedin


Amazon.com, Inc. (NASDAQ:AMZN) just unveiled its list of the hottest toys for the 2016 holiday season. The top toy is the Pie Face Showdown game, made by Hasbro, Inc. (NASDAQ:HAS) -- and the manufacturer has plenty of other items on the list, too, including the Love2Learn Elmo doll and the FurReal Friends Flurry snow leopard pet. The positive buzz has Hasbro stock solidly higher, and its options flying off the shelves.

At last check, HAS was up 1.5% at $77.77. Longer term, however, the stock has been charting a series of lower highs and lows since the summer months. Relative to its mid-April record peak at $88.53, the shares have surrendered over 12% of their value. That said, HAS is currently testing its 80-week moving average, which has acted as a trusty level of support dating back to late 2014.

has daily october 14

From the looks of it, HAS options traders are betting on a bounce from the long-term trendline. Calls are changing hands at seven times the usual intraday rate -- with 3,087 contracts on the tape -- and the October 81 strike is in the lead. It seems safe to assume traders are purchasing fresh positions at the out-of-the-money option, hinting at bullish expectations through next Friday's close, when the front-month series expires.

Likely, these speculators are counting on HAS earnings providing a short-term boost -- unlike last quarter's post-event selloff. The toymaker will hit the confessional on Monday morning, and the options market is pricing in a 6.7% single-day swing in either direction -- roughly par for the course, looking back eight quarters.

Today's bullish bettors aren't the only ones. Over the past two weeks, HAS options traders have bought to open three times as many calls as puts -- albeit amid relatively low absolute volume -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The resultant call/put volume ratio of 3.02 registers in the top one-third of all readings from the prior year.

That said, now is an expensive time to purchase premium on short-term Hasbro, Inc. (NASDAQ:HAS) options -- hardly a surprise, considering the potential for earnings to trigger volatility. Specifically, the stock's Schaeffer's Volatility Index (SVI) of 50% ranks just 10 percentage points from an annual peak.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter