VFC put options have been popular
A big earnings loser this morning is VF Corp (NYSE:VFC). While the retailer reported adjusted fiscal third-quarter profit of $1.23 per share that topped estimates, revenue of $3.38 billion came in below the expected $3.43 billion. Plus, the apparel maker slashed its full-year revenue and profit forecasts amid weak demand for its Timberland brand.
In response, VF Corp stock is down 7.4% to trade at $87.37, on track for its worst single-session drop since October 2018. The shares started off 2020 with a record high of $100.25 on Jan. 2, but now have breached their 160-day moving average for the first time in nearly two months.
In the options pits, puts hold a distinct advantage, despite limited absolute volume. At the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 2.19 puts have been bought to open for every call over the last 10 days-- a ratio that sits higher than 88% of all other readings from the past year.
Echoing this is the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.93, which sits 3 percentage points away from an annual high. This means short-term speculators are more put-heavy than usual.