Put Traders Speculate on Sunnova Energy Stock Before Earnings

Sunnova Energy will step into the earnings confessional after tomorrow's close

Deputy Editor
Oct 25, 2022 at 12:55 PM
facebook X logo linkedin

The shares of Sunnova Energy International Inc (NYSE:NOVA) are 5.7% higher to trade at $14.36 today, just ahead of the solar concern's third-quarter financial report -- due out after the market's close tomorrow, Oct. 26. Put traders are taking advantage of the volatility, with 4,358 bearish bets crossing the tape halfway through the session, or triple the amount typically seen at this point. New positions are being opened at the top contract, the April 2023 7.50-strike call, as well as the January 2023 5-strike put.

Sunnova Energy is expected to post losses of 24 cents in the earnings confessional tomorrow, on revenue of $131.3 million. Options traders anticipate a post-earnings move of 18.1%, regardless of direction, which is nearly double the 9.9% swing the equity posted after earnings during the last two years. Further, over the last eight reports, NOVA moved higher in five instances, including a healthy 20.7% jump after its July results.  

Broadly speaking, this penchant for bearish bets is nothing new for Sunnova Energy stock speculators. Data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security sports a 50-day put/call volume ratio of 1.93, which stands higher than 80% of readings from the past year. 

Analysts, meanwhile, hold a more optimistic outlook. Of the 15 brokerages covering NOVA, 12 say "strong buy," and there's not a single "sell" rating on the books.

After jumping above long-term pressure at its 160-day moving average, Sunnova stock moved back below the trendline and has traded below it for much of October. While the shares managed to add more than 6% in the last 6 months, they remain 38.3% lower in 2022. Looking further back, NOVA is 57.3% lower in the last 12 months.

NOVA Chart October 242022


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI