Stitch Fix Option Alert: Jun 21 $3 Calls Sweep (44) near the Ask: 2364 @ $0.15 vs 2369 OI; Earnings 6/4 After Close [est] Ref=$2.455
Portfolio Pulse from Charles Gross
A significant option activity was observed for Stitch Fix (SFIX) with a sweep of 2364 contracts for June 21 $3 calls near the ask price of $0.15, compared to an open interest of 2369. This activity comes ahead of the company's estimated earnings report on June 4, after the market closes. The reference stock price at the time of the option activity was $2.455.
May 13, 2024 | 2:48 pm
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POSITIVE IMPACT
The observed option activity suggests increased investor interest and speculation ahead of Stitch Fix's upcoming earnings report. The specific focus on calls indicates a bullish sentiment among some traders, expecting the stock to rise above $3 by June 21. Given the reference price of $2.455, this represents a significant potential upside. However, the close proximity of the option strike price to the current stock price, combined with the timing before earnings, adds volatility and risk.
The large volume of call options near the ask price indicates a bullish outlook from investors, expecting the stock to appreciate post-earnings. The timing and nature of this activity often lead to increased stock volatility as the earnings date approaches. Given the stock's current price, the market seems to be speculating on positive news. However, the actual impact will heavily depend on the earnings outcome and market sentiment post-announcement.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100