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Estee Lauder is not just another pretty face among stocks; bulls are ready for some upside ahead of its report next month. Pete Najarian, co-founder of optionMonster, said on CNBC’s Fast Money that he observed more than double the usual volume in options on the iconic cosmetic company. The long calls lock in the purchase price for Estee Lauder, and could be sold earlier if premiums rise with a rally, but these contracts will expire without gains if the stock stays below $80. The stock has fallen a bit lately, but is still close to its all-time high of $77.34. Estee Lauder has been trading in a rage between $74 and $76. The sudden buying of Estee Lauder options on Friday comprise over 92% of the option volume, which is three times its daily average for the last 30 days.
In addition, Stifei Nicolaus raised its target price for Estee Lauder shares from $80 to 85 with a “buy” rating on the stock. Argus initiated coverage with a “buy” rating, Credit Suisse reiterated its “outperform” rating, however, B. Riley downgraded Estee Lauder from “buy” to “neutral”. Nevertheless, the majority of the sentiment concerning shares of Estee Lauder seems to be bullish.
