Momo Stock Moves Lower Ahead of Quarterly Report

Put are running at double the usual volume in the options pits

Deputy Editor
Mar 24, 2021 at 3:47 PM
facebook X logo linkedin

China-based social networking name Momo Inc (NASDAQ:MOMO) is down 5.8% at $14.46 at last check, ahead of its fourth-quarter earnings report, which is due out before the open on Thursday, March 25. The equity has been cooling off since its mid-February five-month peak, and is now trading at its lowest level since mid-January. Year-to-date, the equity is up 3.2%. 


Options traders are chiming in ahead of the event, with puts running at double the usual volume. So far, 11,000 calls and 7,368 puts have crossed the tape, with the weekly 4/23 12.50-strike put -- where positions are currently being opened -- seeing the most activity. 

Over the past 10 weeks, the options pits have been firmly in the bullish camp. This is per MOMO's 50-day call/put volume ratio of 18.40 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 98% of readings from the past year. 

Analysts are split on Momo stock, with three of the six in coverage carrying a "strong buy" rating, and the remaining three calling it a "hold" or worse. Meanwhile, the 12-month consensus price target of $19.89 is a 37.5% premium to current levels.

A look back at its past eight reports shows a split post-earnings response for MOMO, which has ended 50% of the these next-day sessions higher. The security has averaged a post-earnings swing of 7.2% in the last two years, regardless of direction. This time around, the options market is pricing in a much bigger move of 13%. 


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