Post-Earnings Slump in Oneok (OKE) Potentially Opens Door for Opportunistic Options Trading for Counteractive Investors
In the financial world, Oneok's stock has been a subject of interest lately. Here's a breakdown of recent events and analysis surrounding Oneok (OKE).
Last Friday, options flow for Oneok's stock showed a slight favor towards the bears, with net trade sentiment leaning bearish. However, it's important to note that historically, the following week's price action for OKE stock has resulted in upside in 68% of cases, with a median return of 2.32%.
On Monday, total options volume for Oneok's stock reached 4,924 contracts, a 54.89% increase over the trailing one-month average. This surge in options activity could indicate a heightened interest in the stock's future performance.
Last Friday, options flow for Oneok's stock was $136,700 above parity, overwhelmingly favoring the bullish side.
One of the unique aspects of the analysis used is the conversion of price action into a binary code of accumulative and distributive sessions, allowing for cross-sector analysis. This approach has identified a few interesting signals for OKE stock. The 3-7-D sequence, for instance, indicates a rare signal with an even greater next-week upside probability of 77.8%. The flashing of this 3-7-D sequence is similar to the scenario forecasted by the 4-6-D sequence. However, the 4-6-D sequence for OKE stock in the past 10 weeks shows a market vote to buy the security four times and sell six times, resulting in a downward trajectory.
The disclosure of Oneok's second-quarter results showed a net income of $841 million and earnings per share of $1.34, both matching the consensus estimate by Wall Street analysts. Despite this, Oneok's stock has declined by more than 27% since the beginning of the year, and it decreased by 8.5% since the disclosure of the second-quarter results.
Professional investors do not anticipate Oneok's stock falling below the $75 strike price by the Sep. 19 expiration date. This sentiment is reflected in the call volume for Oneok's options, which stood at 4,197 contracts, leaving the put side at only 727 contracts.
For those looking for a more conservative debit-based multi-leg options strategy, the 70/75 bull call spread expiring Sep. 19 may be a viable option, requiring a net debit of $325. Another option, the 75/80 bull call spread expiring Oct. 17, offers a payout of over 170%, but assumes the projections are more accurate than volatility-dependent calculations.
While no specific price predictions using path dependency analysis are available in the search results, the consensus indicates that ONEOK stock is expected to appreciate moderately over the next year, with fair value price targets in the $85–110 range by the end of 2025, and more substantial gains projected longer term.
Several current price predictions and analyst targets for OKE stock in 2025 and beyond are available from multiple sources. The most optimistic forecast projects OKE reaching approximately $196.60 by 2036, while the more conservative forecast suggests a price of around $88.24 in late 2025. Morgan Stanley has set a price target around $110 for OKE as of mid-2025.
In conclusion, while the 3-7-D sequence and 4-6-D sequence signals suggest a potential upside for Oneok's stock in the short term, the overall trend has been downward since the beginning of the year. However, the long-term outlook remains positive, with most forecasts predicting moderate to substantial gains for Oneok's stock in the coming years.
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