Q2 STOCKS TO BUY

Blowout Earnings Draws BlackRock Call Traders

BLK options are now affordably priced post-earnings

Deputy Editor
Jul 17, 2020 at 10:07 AM
facebook X logo linkedin


Just a little under a month ago the CEO of BlackRock, Inc. (NYSE:BLK) announced the company's commitment to increasing its Black workforce. A lot has happened in the time since, including today's trip into the earnings confessional where the asset management firm reported fiscal second-quarter earnings and revenue that bested Wall Street's estimates. Additionally, BlackRock said profit was up 21% from a year ago, and assets under managements saw a 7% increase. As a result, the shares of BlackRock stock are up 1.2%, last seen trading at $573.91.  

Out of the gate, BlackRock stock roared past Wednesday's two-year peak and nabbed a fresh multi-year high of $578.96. Now up 21% over the last three months, the shares have enjoyed support from their ascending 30-day moving average.

The options pits are full of bullish activity, it seems. BlackRock stock's 10-day call/put volume ratio of 1.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 92% of readings in its annual range. In other words, short calls are all the rage, being ordered up at a quicker-than-usual clip.

Today is more of the same -- calls are trading at 18 times the average intraday amount and more than six times the number of puts exchanged so far today. Most popular by far is the July 600 call, followed by the weekly 7/24 600-strike call.

Now with earnings in the rear-view mirror, a volatility crush means options are affordably marked. BLK's Schaeffer's Volatility Index (SVI) of 32% sits in the 15th percentiles of all other readings from the past year. This means options players have been pricing in relatively low volatility expectations at the moment.   Also worth mentioning, BLK's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 84, indicating BlackRock stock has tended to exceed option traders' volatility expectations during the past year.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter