Advance Auto Parts Stock Plummets After Earnings Miss

AAP opened at its lowest level in more than three years

Jake Scott

Deputy Editor

May 31, 2023 at 10:08 AM

Advance Auto Parts, Inc. (NYSE:AAP) is plunging this morning, last seen down 30.9% at $77.57 following the retailer's first-quarter earnings report. Advance Auto Parts' earnings of 72 cents per share came in well below the $2.57 consensus estimate, and the company cut its quarterly dividend.

On the charts, AAP is trading at its lowest level in more than three years. The equity is pacing for its worst single-session loss in more than two years as well, and sits nearly 58% lower over the last 12 months. The car parts retailer has also made its way onto the short sale restricted (SSR) list.

Today's options activity is going wild. So far,6,022 puts and 4,487 calls have been exchanged, which is 47 times the intraday average. The most popular position is the weekly 6/2 75-strike put, followed by the 90-strike call in the same series. New positions are being opened at both contracts.

Before the event, options traders were more optimistic than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AAP's 50-day call/put volume ratio of 1.52 sits in the 90th percentile of its annual range.

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