Dollar Tree Stock Rallying Ahead of Earnings

DLTR has been climbing since mid-January

Earnings season is about to start winding down, though a handful of retailers are still slated to report next week. Dollar Tree Inc (NASDAQ:DLTR) will announce its fourth-quarter results before the open Wednesday, Mar. 13. 

Dollar Tree stock closed half of its last eight post-earnings sessions higher, including a 4.4% pop this past November. The security has averaged an 8.9% swing, regardless of direction, over these past two years. This time around, the options pits are pricing in a next-day swing of 10.6%. 

DLTR has been climbing on the charts since its mid-January bounce off the $130 level, now sporting a 4.6% year-to-date lead. Close support from its 10-day moving average has helped guide the stock higher since its rebound as well. 

DLTR March7

Over the past 10 weeks, calls have been much more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 50-day call/put volume ratio of 2.12 ranks higher than 93% of readings from the past year. 

Leave a Reply

Your email address will not be published. Required fields are marked *