Schaeffer's Top Stock Picks for '25

Earnings Preview: ARIAD Pharmaceuticals, Inc., Priceline Group Inc., and Wal-Mart Stores, Inc.

Analyzing recent option activity on Ariad Pharmaceuticals, Inc. (ARIA), Priceline Group Inc (PCLN), and Wal-Mart Stores, Inc. (WMT)

Feb 18, 2015 at 4:48 PM
facebook X logo linkedin


Among the stocks gearing up to report earnings tomorrow are drugmaker Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), travel website Priceline Group Inc (NASDAQ:PCLN), and blue-chip retailer Wal-Mart Stores, Inc. (NYSE:WMT). Below, we'll break down how options traders are positioning themselves, and how much speculators are willing to pay for their bets on ARIA, PCLN, and WMT.

  • ARIA, which will release fourth-quarter earnings tomorrow morning, has been gaining ground -- due in part to last week's proxy-related pop -- with the shares advancing 6.8% year-to-date to hit $7.34. Furthermore, puts have been popular in the stock's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ARIA's 50-day put/call volume ratio of 0.22 ranks in the 92nd annual percentile, meaning puts have been bought to open over calls at a near-annual high clip. Traders looking for a negative post-earnings reaction have history on their side; in the session following its last four earnings releases, ARIA has lost an average of 2.9%. Short-term speculators are paying inexpensive prices for the stock's options, as its Schaeffer's Volatility Index (SVI) of 64% sits in the 24th percentile of all similar annual readings.

  • Ahead of tomorrow morning's earnings release, PCLN is down 11.8% year-over-year to reach $1,122.99. In the options pits, Priceline Group Inc's Schaeffer's put/call open interest ratio (SOIR) of 1.05 sits in the 85th percentile of its annual range, suggesting an above-average put-bias among short-term traders. Meanwhile, in the session following its last eight earnings reports, the shares of PCLN have experienced moves to the upside six times. Near-term options for the equity are currently available for slightly below-average prices, as its SVI of 29% sits in the 40th percentile of its annual range.

  • The shares of WMT have been trending upwards, with the security up 15.3% year-over-year to hit $86.29. On the sentiment front, call buying has been popular in the stock's options pits, ahead of tomorrow morning's quarterly results, which signifies the unofficial end to earnings season. Specifically, Wal-Mart Stores, Inc.'s 10-day ISE/CBOE/PHLX call/put volume ratio of 5.41 ranks higher than 94% of comparable readings taken in the past year. Looking back, in the session following its last eight earnings reports, WMT has moved an average of 1.9%. Traders are paying middling prices for their short-term bets on the stock, as its SVI of 19% sits in the 46th percentile of all similar annual readings.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));