Options Traders Blast Lowe’s Stock After Earnings

Lowe’s beat fiscal third-quarter earnings and revenue estimates

Lowe’s Companies Inc (NYSE:LOW) reported third-quarter adjusted earnings per share of $2.89 on revenue of $20.17 billion, both of which beat Wall Street’s estimates And while the home improvement retailer also raised its outlook, it said it expects full-year sales to decline year over year, leading LOW 4.7% lower to trade at $259.02 at last glance.

Over in the options pits, intraday volume is running at 4 times the amount that’s typically seen at this point in the day. New positions are being sold to open at the most popular position, the weekly 11/22 270-strike call.

On the charts, support at the $260 level has been in place since mid September, and appears to be capturing today’s pullback. The security is pacing for its worst single-session percentage drop since June, and is 3.1% lower for the quarter. Since the beginning of the year, LOW is up 17.3%.

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