ADVANCE AUTO PARTS: Options Traders Betting on a Big Move

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AAP Stock Fair Value – Advance Auto Parts ($NYSE:AAP), Inc. is an American automotive aftermarket parts retailer, headquartered in Raleigh, North Carolina. Options traders are betting on a big move for Advance Auto Parts stock. The company’s shares have been relatively volatile in recent months, and options traders are taking advantage of this by buying options that will profit if the stock makes a big move in either direction. Some traders are buying calls, which will profit if the stock goes up.

Others are buying puts, which will profit if the stock goes down. And still others are buying both calls and puts, in a bet that the stock will make a big move in either direction. No one knows for sure what will happen with Advance Auto Parts stock.

Share Price

On Friday, ADVANCE AUTO PARTS stock opened at $164.0 and closed at $161.3, down by 2.3% from previous closing price of 165.1. On Friday, the options volume for ADVANCE AUTO PARTS was more than double its average daily volume, with most of the activity concentrated in the July weekly expiration $165 calls. Some traders may be betting on a short-term rebound for the stock, while others could be hedging their positions or taking advantage of the low implied volatility.

VI Analysis – AAP Stock Fair Value Calculator

Advance Auto Parts is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. The company’s wide selection of parts, tools, and accessories, as well as its helpful associates, make it a one-stop shop for all your automotive needs. The company’s fundamentals reflect its long-term potential. Advance Auto Parts has a strong balance sheet, with plenty of cash on hand to invest in growth initiatives.

The company’s earnings have been growing steadily, and its share price has more than doubled over the past five years. The intrinsic value of Advance Auto Parts shares is around $438.1, calculated by the VI Line. This means that the stock is currently undervalued by 63%.

Summary

This represents a significant increase in demand for the options, and suggests that traders believe the stock price will move higher in the near future. Given the recent run-up in the stock price, some investors may be concerned that the company could miss estimates or provide weak guidance.

However, the strong demand for call options suggests that many traders believe Advance Auto Parts is poised for a strong quarter. Investors considering a position in Advance Auto Parts stock should keep an eye on the company’s earnings report and guidance, as well as the overall performance of the automotive sector. With the demand for call options suggesting bullish sentiment, Advance Auto Parts stock could be a good option for investors looking for upside potential in the near term.