Exchange Stock Staring Up at Stiff Resistance

ICE has seen volumes flatten out in the last six months

Jul 5, 2022 at 12:12 PM
facebook twitter linkedin


Intercontinental Exchange Inc (NYSE:ICE) recently broke below its 1,000-day moving average before failing at the $100 level. Plus, equity and options trading volumes have been flat year-over-year versus the growth we witnessed a year ago post-Covid stimulus, and year-over-year comps could disappoint. Year-to-date, ICE sports a 30.4% year-to-date deficit.
 
The shift in sentiment in the options pits could provide headwinds. ICE’s 50-day call/put volume ratio of 2.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 98% of readings from the past year. In the same vein, the stock's Schaeffer's put/call volume ratio (SOIR) of 0.45 sits higher than just 6% of readings from the last 12 months, showing a strong penchant for calls of late.
 
The equity is ripe for bear notes as well. Of the 10 analysts in coverage, seven carry a “strong buy” rating, plus, the 12-month consensus price target of $134.71 is a 41.8% premium to current levels.
 
Meanwhile, though still low, short interest increased 43% since the end of March as the equity has lurched lower, suggesting perhaps, that the short players have control of the exchange operator. Lastly, our recommended put has a leverage ratio of -5.8 and will double in a 15.8% drop in the underlying equity.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this ICE 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.
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners