GYRC Worldwide Inc. Call Players Pick Up the Pace Ahead of EarningsAndrea Kramer (firstname.lastname@example.org)
4/30/2010 12:12:46 PM
Call players have taken an interest in YRC Worldwide Inc. (YRCW) lately, as investors place their bets ahead of the firm's upcoming turn in the earnings limelight. According to Thomson Reuters, the transportation titan is slated to report its first-quarter figures before the opening bell on Tuesday, May 4.
Judging by recent data from the International Securities Exchange (ISE), the options crowd has high hopes for YRCW heading into the event. The stock sports an ISE 10-day call/put volume ratio of 168.00, reflecting the excessive preference for YRCW calls over puts during the past couple of weeks. What's more, this ratio stands only one percentage point shy of an annual bullish peak.
Furthermore, the equity's Schaeffer's put/call open interest ratio (SOIR) rests at 0.27, indicating that calls are more than three times as popular as puts among short-term options. Compared to similar readings taken during the past year, the security's SOIR ranks in the 21st annual percentile, implying that near-term traders have been more optimistically aligned toward YRCW only 21% of the time during the past year.
Technically speaking, however, it's easy to see why calls are noticeably more prevalent than their bearish rivals, as the shares of YRCW are trading beneath the $1 level. In other words, there's little room for the shares to traverse south – hence the lack of pessimistic positions.
At midday, YRCW has gained 2% to explore the $0.56 region. LTA