Retail Stock Meets Resistance Ahead of Earnings

URBN options are affordably priced at the moment, though

Deputy Editor
Aug 20, 2020 at 3:06 PM
facebook X logo linkedin

Urban Outfitters (NASDAQ:URBN) is down 3.2% to trade at $19.06 this afternoon, taking a breather ahead of its second-quarter earnings report after the close on Tuesday, August 25. URBN is up 14% in the last month, but is currently meeting some resistance below the $21 region. Eyeing its first weekly loss in the last four, the shares' 180-day moving average has emerged as a stiff ceiling as well. 

urbn august 20

In the past eight quarterly reports, six of URBN's eight post-earnings sessions were negative, including a 15.2% drop back in November, and a 7.9% fall back in May. The security averaged a next-day return of 6.9%, regardless of direction, which is much smaller than the 11.3% move the options market is pricing in this time around.

There's pessimism among the brokerage bunch, with only six out of the 20 in coverage sport a "buy" or better rating. Meanwhile, the 12-month consensus price target of $19.06 is exactly in line with current levels, implying a post-earnings pop could trigger a shift in analyst sentiment.

And even though earnings are looming, the equity's Schaeffer's Volatility Index (SVI) of 67% stands higher than just 20% of all other readings from the past 12 months, implying near-term option traders are pricing in extremely low volatility expectations.  


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