Schaeffer's Option Activity Watch: Home Improvement Retailer Sees Jump in Call Trading Ahead of Earnings

Schaeffer's Option Activity Watch: Home Improvement Retailer Sees Jump in Call Trading Ahead of Earnings

CINCINNATI--(BUSINESS WIRE)-- Lowe's Companies (NYSE: LOW) is lining up to enter the earnings confessional, and options traders are flocking to the stock's bullish bets in anticipation of a positive report. The International Securities Exchange (ISE) and the Chicago Board Options Exchange (CBOE) have seen an increase in call trading, and the stock's ISE/CBOE 10-day call/put volume ratio rests at 4.80, indicating that nearly five calls have been purchased to open for every one put purchased to open on those two exchanges. What's more, this ratio is higher than 93% of all those taken during the past year.

In addition, LOW's Schaeffer's put/call open interest ratio rests at 0.37, as call open interest roughly triples put open interest among options slated to expire in less than three months. Furthermore, this ratio is lower than 93% of all those taken during the past year, indicating that short-term options speculators have been more optimistically aligned toward the shares just 7% of the time during the past year.

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    Source: Schaeffer's Investment Research