Shares of American Express Co (NYSE:AXP) are 4% higher to trade at $336.08 at last check, after the credit card giant beat top- and bottom-line estimates for the third quarter. The company also raised the lower end of its 2025 profit and revenue forecasts, citing continued spending from affluent customers despite economic uncertainty.
AXP is on track for its best day since May 12, and sports a 13% year-to-date lead. The equity has taken a breather from its Sept. 23, record high of $349.19, but found a floor at the $320 level, which contained a pullback in late since August. The 80-day moving average has also provided support.
An unwinding of pessimism in the options pits could boost AXP. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 1.21 ranks higher than 88% of annual readings.
So far today, 17,000 calls and 11,000 puts have been traded -- 6 times the volume typically seen at this point. The most active contract is the October 340 call, with positions being sold to open.
These options are reasonably priced, too. The equity's Schaeffer's Volatility Index (SVI) of 36% sits in the low 21st percentile of its annual range, meaning options traders are pricing in low volatility expectations.
