Q2 STOCKS TO BUY

Call Traders Circle Hasbro Stock Despite Selloff

Calls have been preferred over puts during the past 10 weeks

Managing Editor
Feb 27, 2020 at 9:42 AM
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Toymaker Hasbro, Inc. (NASDAQ:HAS) is down 2.8% this morning, just off a fresh annual low of $80.22, after receiving multiple price-target cuts from covering analysts. J.P. Morgan Securities was the first to weigh in, slashing its price to $94 from $113. SunTrust Robinson and Monness Crespi Hardt followed shortly thereafter, lowering their price-targets to $90 and $110, respectively. Heading into today, half of the brokerage firms following Hasbro stock carry a "hold," while the remaining sport a "strong buy."

HAS has had a volatile few months on the charts, and are just over two weeks off the company's disappointing full-year outlook. With today's sharp pullback adding to the recent sell-off, the equity is now pacing toward its fifth straight day in the red. Over the past nine months alone, Hasbro stock has shed over 15%.

In the options pits, calls have been preferred over puts. This is per the stock's 10-day call/put volume ratio of 2.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ranks in the 91st annual percentile, meaning this preference for long calls is unusual.

Echoing this sentiment is Hasbro stock's Schaeffer's put/call open interest ratio (SOIR) of 0.30, which ranks in the 19th percentile of its annual range. In other words, short-term options players have rarely been more call-heavy during the last 12 months. 

 

 
 

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