CARR's implied volatility (IV) should decline into next week
Carrier Global Corp (NYSE:CARR) has enjoyed quite a run since spinning off of United Technologies (RTX) in early April. The 100-day moving average has provided long-term support on the charts as well. This positive price action has CARR up 38% year-to-date, and posting a 53.5% year-over-year gain.
An unwinding of pessimism in the options pits could provide tailwinds. Three of the top four open interest positions are puts. Plus, the stock's 10-day put/call volume ratio of 1.00 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 86th percentile of its annual range.
There is plenty of room for upgrades amongst the brokerage bunch, too. Of the 15 analysts in coverage, eight still carry a tepid "hold" rating on Carrier Global stock.
Since the company recently reported earnings, CARR's implied volatility (IV) should decline into next week. Our recommended call has a leverage ratio of 7.2 and will double on a 14.1% pop in the underlying shares.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this CARR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.