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.
To continue reading this article, click here: http://www.schaeffersresearch.com/commentary/content/home+improvement+retailer+sees+jump+in+call+trading+ahead+of+earnings/observations.aspx?click=home&ID=94579&source=businesswire
Source: Schaeffer's Investment Research