Self-driving tech specialist Mobileye NV NYSE: MBLY stock up 0. But the company is due to report earnings before the open tomorrow, and MBLY has a history of disappointing post-earnings moves. Specifically, over the past eight quarters, MBLY shares have moved to the options in the session after reporting five times, including the last three quarters in a row.
The stock tends to make relatively muted moves, averaging a one-day swing of just 2. But options traders appear to be eyeing a more dramatic result this time, pricing in a 9.
Drilling down, MBLY calls and puts are both trading hands at five times the expected intraday pace, with calls leadings options 27, to 19, Most popular so far are the April and March 55 calls, with more than 4, contracts apiece on the tape, and a mix of buying and selling stock spotted at both.
Taking a step back, today's preference for MBLY calls is nothing new. Over the past 10 days on the International Securities Exchange ISEChicago Options Options Exchange CBOEand NASDAQ OMX PHLX PHLXthe stock has seen 1. Over the same period, the March 48 call has seen the largest rise in open interest, with the major exchanges suggesting a large portion of these positions were bought to open.
The popularity of buying out-of-the-money calls may be explained outside of the options pits, however. It's likely some short sellers may be picking up protective calls ahead of tomorrow's earnings to hedge against an upside surprise. Meanwhile, analysts are quite upbeat toward Mobileye NV NYSE: Out of 19 firms providing coverage, 15 rate the shares a "buy" or better, while not one has handed out a "sell" options.
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MY ACCOUNT CONTACT US SEARCH. ABOUT US NEWS AND ANALYSIS TRADING SERVICES OPTIONS EDUCATION BROKER CENTER 30 FREE TRADES. Mobileye NV MBLY call buyers may not all be bulls. Stocks quoted in this article: Analysts, Shorts Diverge on MBLY Opinions The popularity of buying out-of-the-money calls may be explained outside of the options pits, however. Don't mbly Schaeffer's free weekly stock market forecast. Sign up now for Monday Morning Mbly. Welcome to Schaeffer's Investment Research!
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