Options Bulls May Want to Bet On This Underloved Stock

The stock is holding above its April bull gap

May 14, 2019 at 1:34 PM
facebook twitter linkedin


The shares of advertising giant Omnicom Group Inc. (NYSE:OMC) seem to be in the midst of a breakout, sporting a solid 8.6% year-to-date lead. The stock’s current perch on the charts looks promising as it finds support from the $78 level, a previous level of resistance and site of an earnings bull gap from April.

190510omc

Wall Street is certainly not positioned properly for OMC’s newfound technical strength. For starters, most analysts have “hold” or worse recommendations, setting up the potential for a wave of bull notes to bring more buyers to the table.

Plus, short interest accounts for almost two weeks’ worth of buying power, based on average daily trading volumes, and the Schaeffer’s put/call open interest ratio (SOIR) of 1.52 shows a heavy put-skew among near-term speculators. Short covering and/or a shift in sentiment in the options pits could also help OMC on the charts.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this OMC commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

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!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners