Q2 STOCKS TO BUY

SJM Breaks Higher After Sweet Earnings Beat

Options traders were extremely bullish ahead of the event

Digital Content Manager
Nov 24, 2020 at 9:15 AM
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Packaged food producer J M Smucker Co (NYSE:SJM) is getting a boost today, following an earnings and revenue beat for its fiscal second quarter. The company also lifted its full-year forecast and posted a 4% rise in second-quarter organic sales, citing sector growth due to elevated at-home consumption. At last check, SJM is up 1.3% to trade at $117.51. 

SJM's path has been a volatile one during these past several months, with rejection at the $120 area sparking several pullbacks. Though support at the 200-day moving average has, for the most part, captured these dips, the security has yet to take back its pre-pandemic highs near the $123 mark. For the year, SJM is up 11.4%. 

Despite this technical stronghold, analysts have yet to be convinced. The stock sports seven "hold" ratings, two "strong sell" ratings, and not a single "buy."

Options players have taken a much more bullish stance. This is per SJM's 10-day call/put volume ratio of 10.50 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 91% of readings from the past 12 months, indicating a much healthier-than-usual appetite for long calls of late. 

 
 

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