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Put Traders Target Sinking Fubo Stock

Fubo's subscriber outlook disappointed investors

Deputy Editor
Feb 27, 2023 at 12:34 PM
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Options traders are taking an interest in Fubotv Inc (NYSE:FUBO), after the streaming platform reported fourth-quarter earnings and revenue results.

Specifically, the company turned in wider-than-expected losses of 76 cents per share, while revenue of $319.32 million beat Wall Street's expectations. Meanwhile, FUBO was last seen 11.3% lower to trade at $2.05, weighed down by a disappointing subscriber outlook. 

Bearish traders are on the prowl following the update, and 50,000 puts, or 10 times the intraday average volume, have already been traded near the session's halfway point.  The most popular contract is the March 2 put, followed by the weekly 3/3 2.50-strike put, with new positions being opened at the former. 

This denotes a slight shift in the options pits, as calls were the popular choice over the last 10 weeks. Specifically, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 3.97 sits higher than 70% of annual readings.

Meanwhile, short interest makes up 23.5% of the security's available float, or nearly one week's worth of pent-up buying power. However, the security has landed on the Short Sale Restricted (SSR) list today. 

On the charts, the equity is still wallowing in penny stock territory, and is pacing for its lowest close in more than a month today. Year-to-date, however, Fubo stock is still up 17.5%.

 

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