Papa John's stock shows unusual activity, Long Strangle strategy considered

From Nasdaq: 2024-06-13 14:38:41

Options trading dates back to 332 B.C., with modern origins in 1973. Unusual activity in Papa John’s stock prompts consideration of a Long Strangle strategy. 1,018 active options, highest being AAPL June 21 $212.50 put. PZZA stock down 36% YTD, analysts view favorably but Barchart Technical Indicator signals a Strong Sell.

Papa John’s reported Q1 2024 results, revenue down 2.5% with biggest miss in five years but earnings beating estimates. Concerns over declining same-store sales and CEO transition impacting stock performance. A Long Strangle strategy may not be optimal due to lack of anticipated movement, yet low cost makes it worth considering.

Financial cost of Long Strangle trade in PZZA stock analyzed, with put option appearing more favorable. Stock price movements discussed in relation to put and call options. The potential for a positive event in the form of a new CEO announcement gives hope for long-term stock performance.

Disclosure: Author does not hold positions in mentioned securities. Information shared for informational purposes. Views expressed are author’s own, not necessarily Nasdaq, Inc.’s.



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