Shares of AutoZone Inc (NYSE:AZO) were last seen down 2.9% to trade at $3,990, after the company missed fiscal fourth-quarter earnings expectations. Revenue came in above estimates, though, as the automotive parts and accessories retailer also reported strong same-store sales growth.
AZO is extending a pullback from its Sept. 11, all-time high of $4,388.11 as it gaps further below the 20-day moving average. The equity earlier slipped to its lowest level since mid-August, but still carries a 33.4% year-over-year lead.
The brokerage bunch is yet to chime in on the results, but was overwhelmingly bullish on the stock. Of the 27 firms in coverage, 23 rated it a "buy" or better, while the rest sat at a tepid "hold."
Amid low absolute volume, 300 calls and 284 puts were exchanged so far today, which is double the amount typically seen at this point. The most active contract is the December 5,000 call, while positions are opening at the October 4,300-strike call.
Before purchasing any AZO options, though, it's worth considering that the stock has tended to drastically underperform expectations in recent months, per the Schaeffer's Volatility Scorecard (SVS) of 1 out of 100.
