The precious jewelry retailer also issued a strong current-quarter forecast
Signet Jewelers Ltd (NYSE:SIG) stock is up 23.7% to trade at $59.83 at last check, after the company beat fourth-quarter earnings and revenue estimates. The precious jewelry retailer also issued a strong current-quarter forecast, and announced a dividend hike of 10%.
Pacing for its best single-day percentage gain since June 2020, SIG is breaking above resistance at the $52 level on a bounce off its March 13, four-year low of $45.55. Shares are trimming their 42.4% year-over-year deficit, and earlier conquered the 40-day moving average for the first time since December.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio of 5.19 sits higher than 98% of annuals readings. This indicates that options traders have been much more bullish than usual.
That optimism is echoed in today's options activity, with 3,399 calls exchanged so far -- 24 times the amount typically seen at this point, compared to just 1,181 puts. Most popular by far is the March 60 call.
Options are an attractive route to bet on the shares, as they tend to outperform volatility expectations. This is per Signet Jeweler stock's Schaeffer's Volatility Scorecard (SVS), which sits at an elevated 92 out of 100.