Revisiting Unusual Options Activity on Digital Turbine. Inc (APPS) as Earnings Report Nears

Revisiting Unusual Options Activity on Digital Turbine. Inc (APPS) as Earnings Report Nears

  • Digital Turbine, Inc. (NASDAQ:APPS) expected to report earnings on November 2nd
  • Unusual Whales unusual options activity reflects a continued bullish sentiment
  • Digital Turbine, Inc. is up 13% since our last article on September 23rd

Back in late September, we wrote an article on the Unusual Whales Unusual Blog analyzing unusual options activity and social media chatter for mobile services company, Digital Turbine, Inc. (NASDAQ:APPS). When we published the article on September 23rd, APPS had received a significant amount of attention from Reddit and FinTwit, and the options flow reflected heavy bullish sentiment, while the stock traded around the $70 mark. Now, a month and some days later heading into the company’s earnings, it is apparent that the bullish expectations were warranted--and continued.

During the first week of October, ask side options flow on the Unusual Whales flow tool was  heavily bullish. Traders had their eyes set on in the money call strikes, with the highest premium order on the $45 call strike expiring on December 17th, 2021, for $148k. During this time, the Digital Turbine stock price ran from $70 to just under $74 per share.

Moving into the second week of October, APPS continued to be the subject of bullish expectations. As the share price made more rapid movement upward, (at this point, over $78 per share), there was still a tendency toward in the money contracts. However, we begin to see a shift toward out of the money contracts, as well as longer dated expiration dates. The $85 call option expiring in January of 2021 saw an elevated amount of interest from options traders.

As the month of October starts rounding off to a close, Digital Turbine has yet to display significant bearish sentiment in the options flow. Today, October 27th, APPS is trading at around $85.42 per share. Although this is a little over $4 shy of the monthly high of $89.86, the stock is up roughly 13% since the publication of our last article.

APPS is expected to release their earnings report on November 2nd. The company expects to post quarterly earnings of $0.39 per share (representing a yearly change of +160%), and revenues are expected to be 328.8% higher from the same quarter of last year, up to $304 million, according to this Nasdaq article. Today’s Unusual Whales flow? 81.99% of all premiums were flagged as bullish.