Chewy Inc (NYSE:CHWY) stock is up 1% to trade at $35.18 at last glance, earlier jumping as high as $37.34, after the pet supply e-tailer beat top- and bottom-line expectations for the third quarter. The company also issued a disappointing fiscal fourth-quarter outlook, however.
CHWY earlier broke above recent overhead pressure the $36 level as well as the 60-day moving average. Now on track for a fourth-straight daily gain, shares sport a 14.4% year-over-year lead.
Analysts lean bullish toward Chewy stock, with 21 of the 28 in coverage sporting a "buy" or better, while the 12 -month consensus target price of $44.97 is a 26.5% premium to current levels.
Options traders are not as optimistic, per CHWY's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 89% of all other readings from the past year. This suggests puts have been much more popular than usual over the last 10 weeks.
Today, overall options volume is running at eight times the amount typically seen at this point, with 23,000 calls and 10,000 puts across the tape. The most popular contract is the weekly 12/12 35-strike call, with positions being bought to open at the 37-strike call in that series.
