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.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1