Earnings Blowout Sends AMD Surging To Record Highs

In response, the equity is swimming in bull notes, including an upgrade out of … So far today, the chip stock has seen 705,000 call and 313,000 put …

Following a blowout second-quarter earnings and revenue beat, Advanced Micro Devices (AMD) hiked its full-year forecast, citing an increase in chip demand as the work-from-home trend flourishes around the world. In response, the equity is swimming in bull notes, including an upgrade out of Susquehanna to “positive” from “neutral.” Now, AMD is buzzing with options activity, hitting a record high of $77.19 earlier, and was last seen up 12.6% at $76.14.

Today’s surge has AMD gapping higher for the second time this month alone, and has the stock sporting a brag-worthy 124% year-over-year gain. Supporting the shares on their impressive journey higher is the 100-day moving average.

Daily stock chart of Advanced Micro Devices stock with 100-day moving average

Daily stock chart of AMD since January 2020

AMD Chart Daily

Looking toward the options pits, volume is soaring. So far today, the chip stock has seen 705,000 call and 313,000 put contracts traded. This volume runs at double the expected rate, and in the 99th percentile of its annual range. Most active looks to be the weekly 7/31 80- and 75-strike calls.

Longer term, the sentiment has been the same. This is per data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which shows Advanced Micro Devices stock with a 50-day call/put volume ratio of 3.63, ranking in the 99th annual percentile. In other terms, calls have been purchased over puts at a quicker-than-usual clip over the past 10 weeks.

Now looks like an attractive time to trade the semiconductor giant too. In fact, the stock’s Schaeffer’s Volatility Index (SVI) of 60% stands in just the 27th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.

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Tradeweb Announces EFP on Cboe High Yield Corporate Bond Index Futures

Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of … Bond Index Futures (IBHY) listed on the Cboe Futures Exchange (CFE).

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

Additional Disclaimers

Futures trading is not suitable for all investors and involves the risk of loss. That risk of loss can be substantial and can exceed the amount of money deposited for a futures position. You should, therefore, carefully consider whether futures trading is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding futures trading risks, see the Risk Disclosure Statement in Appendix A to CFTC Regulation1.55(c).

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with Tradeweb, Markit or BlackRock. Investors should undertake their own due diligence regarding their securities, futures and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein. Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Cboe Global Markets, Inc. and its affiliates, to the maximum extent permitted by applicable law, make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the iBoxx iShares indices to track the performance of its strategy, and shall not in any way be liable for any inaccuracies or errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the iBoxx iShares indices or the EFP and shall not in any way be liable for any inaccuracies or errors.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the “Indexes”) referenced herein are the property of Markit Indices Limited (“Index Sponsor”) and have been licensed for use in connection with Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures. Each party to a Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures transaction acknowledges and agrees that the transaction is not sponsored, endorsed or promoted by the Index Sponsor. The Index Sponsor makes no representation whatsoever, whether express or implied, and hereby expressly disclaims all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Indexes or any data included therein or relating thereto, and in particular disclaims any warranty either as to the quality, accuracy and/or completeness of the Indexes or any data included therein, the results obtained from the use of the Indexes and/or the composition of the Indexes at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Indexes at any particular time on any particular date or otherwise. The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Indexes, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein.

The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures and Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, the ability of the Indexes to track relevant markets’ performances, or otherwise relating to the Indexes or any transaction or product with respect thereto, or of assuming any risks in connection therewith. The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Indexes. No party purchasing or selling Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Indexes. iBoxx® is a service mark of IHS Markit Limited.

The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the “Indexes”) and futures contracts on the Indexes (“Contracts”) are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, ” BlackRock”). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities.

BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes (“Underlying Data”). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto.

BlackRock makes no warranty, express or implied, as to results to be obtained by Markit or its affiliates, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages.

iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates.

Cboe®, Cboe Global Markets®, Cboe Volatility Index®, and VIX® are registered trademarks of Cboe Exchange, Inc. or its affiliates.

About Tradeweb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $790 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200729005516/en/

Contacts

Tradeweb Media Contact

Hannah Randall Akeel, +1 646 939 6198

Hannah.RandallAkeel@Tradeweb.com

Cboe Media Contact

Angela Tu, +1 917 985 1496

atu@cboe.com

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Intel Stock Keeps Sliding After Chief Engineering Officer’s Resignation

Intel Corporation’s (NASDAQ:INTC) chief engineering officer Murthy … point considered as a CEO candidate following Brian Krzanich’s resignation in …

Intel Corporation’s (NASDAQ:INTC) chief engineering officer Murthy Renduchintala will be stepping down, effective August 3, just a few days after the company announced delays in the release of its 7-nanometer manufacturing process. Renduchintala came to the company from Qualcomm (QCOM) in 2015 and was at one point considered as a CEO candidate following Brian Krzanich’s resignation in 2018. INTC is off 0.4% to trade at $49.35 at last check.

Last week’s announcement, paired with a second-quarter earnings miss sent Intel stock plummeting back toward its late-March lows, tacking on its biggest one-day drop since March 16. Not only that, the stock breached recent support at its 200-day moving average, and now suffers a year-to-date deficit of nearly 18%.

Analysts have already lost interest in the blue chip. Just seven call it a “strong buy,” while 12 say “hold,” and six say “strong sell.” The 12-month consensus target price of $57.05, meanwhile, is a 15.7% premium to last night’s close.

Options bulls still seem to be on board, though. INTC’s 50-day call/put volume ratio of 1.91 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 90% of readings from the past 12 months. Adding to this, the equity’s Schaeffer’s put/call open interest ratio (SOIR) of 0.55 sits below all other annual readings, suggesting short-term options players haven’t been more call-biased.

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What’s in Store for Cboe Global (CBOE) This Earnings Season?

Cboe Global Markets, Inc. CBOE is slated to report second-quarter 2020 … The Zacks Consensus Estimate for second-quarter market data fees, and …

Cboe Global Markets, Inc. CBOE is slated to report second-quarter 2020 results on Jul 31, before the opening bell. The company has a trailing four-quarter earnings surprise of 8.24%, on average.

Factors to Note

CBOE Global’s second-quarter performance is likely to have benefited from higher market data fees and access and capacity fees, partially offset by lower transactions fees and regulatory fees. The Zacks Consensus Estimate for second-quarter market data fees, and access and capacity fees are pegged at $57 million each, indicating growth of 10% and 4.6%, respectively, from the prior-year quarter.

Notably, the Zacks Consensus Estimate for second-quarter revenues is pegged at $297 million, indicating an improvement of 4.9% from the year-ago reported figure.

However, lower transaction fees, which are likely to reflect lower trading volumes in Options, U.S. Equities and Futures, might have weighed on the second-quarter top line. The consensus mark for second-quarter transaction fees is pegged at $332 million, indicating a decline of 22.2% from the prior-year quarter.

Nevertheless, with respect to revenues per contract (RPC), Cboe Global estimates second-quarter Options RPC to be in line to up 1% from the two months ended May 31 average, primarily attributable to higher RPC projected for multi-listed options for June, which in turn have been driven by lower volume-related rebates in June. RPC for Futures is expected to be in line with the two-month ended May 31 average.

Moreover, CBOE Global is likely to have benefited by its strong proprietary products, particularly SPX index options and VIX Futures despite the COVID-19 induced market volatility. The company’s buyout of Hanweck and FT Options this February bodes well as these primarily provide portfolio risk management solutions, which have been in strong demand among its clients of late.

Furthermore, the company might have gained from synergies derived from its acquisition of Bats Global, which is likely to have streamlined expense structure. Evidently, the company’s total operating expenses are likely to have declined in the to-be-reported quarter, primarily due to reduced compensation costs and fall in expenses for travel and entertainment and marketing events on account of the current environment.

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.25, indicating growth of 10.6% from the prior-year quarter.

Cboe Global Markets, Inc. Price and EPS Surprise

Cboe Global Markets, Inc. Price and EPS SurpriseCboe Global Markets, Inc. Price and EPS Surprise
Cboe Global Markets, Inc. Price and EPS Surprise

Cboe Global Markets, Inc. price-eps-surprise | Cboe Global Markets, Inc. Quote

What the Zacks Model Says

Our proven model predicts an earnings beat for CBOE Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: CBOE Global has an Earnings ESP of +0.48%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.25 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CBOE Global carries a Zacks Rank of 3.

Other Stocks to Consider

Some other stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

Apollo Global Management, Inc. APO has an Earnings ESP of +2.96% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Moody’s Corporation MCO has an Earnings ESP of +2.14% and a Zacks Rank of 3, at present.

Acadia Realty Trust AKR has an Earnings ESP of +0.81% and a Zacks Rank #3.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year’s 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

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Ebay Stock Gears Up For Q2 Earnings Report

And while the stock has cooled off from that peak, its 30-day moving average has contained its latest pullback. Longer term, EBAY is performing …

The shares of eBay Inc (NASDAQ: EBAY) are up 0.2% at $55.24 this afternoon, just a few days ahead of the company’s fiscal second-quarter report, due after the close on Tuesday, July 28. Below, we will look at how the stock has performed on the charts of late, and explore some of the options activity surrounding EBAY ahead of the event.

Digging deeper, the equity has completely recovered from its mid-March lows near the $26 level. Shares have been on a steady climb since April, breaking record highs on a monthly basis, with the equity’s latest all-time-high coming in at $61.06 on July 13. And while the stock has cooled off from that peak, its 30-day moving average has contained its latest pullback. Longer term, EBAY is performing particularly well, and sports a 51.9% lead year-to-date.

EBAYEBAY
EBAY

Analysts are split on the equity. Of the 23 in coverage, 13 carry a tepid “hold” rating, while the remaining 10 sport a “strong buy”. Meanwhile, the stock’s 12-month consensus target price of $55.62 is right in line with current levels.

The options pits, however, show calls are more popular. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY sports a 10-day call/put volume ratio of 4.11 which sits in the 90th percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets over the past two weeks.

Lastly, a look at the equity’s history of post-earnings reactions during the past two years shows a generally positive response. During its last eight reports, more than half of these next-day sessions were higher, including a 5.9% jump in October 2018. The security averaged a post-earnings swing of 5% the last eight quarters, regardless of direction. This time around, the options market is pricing in a much bigger move of 8.2%.

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