Archer Aviation (ACHR) options traders are pricing in a modest move ahead of earnings. With the stock of the electric air mobility company trading around $6.39, the closest at-the-money strike is $6.50. Importantly, the $6.50 call is priced at $0.11, while the put is priced at $0.22, which equates to an implied move of about 5.2%. This gives ACHR stock an expected post-earnings range of roughly $6.06 to $6.72 per share.
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In addition, there appears to be a lot of active positioning at the nearby strikes, especially on the call side. For example, the $6.00 call had 9,616 contracts traded with 8,721 in open interest, while the $6.50 call had 7,843 contracts traded with 6,577 in open interest. By comparison, put volume was much lighter at the $6.50 strike, with only 116 contracts traded and 352 in open interest. The $7.00 call was also active, with 5,143 contracts traded and 10,319 in open interest.
Overall, the options market is pricing in some earnings volatility, but not an extreme move. Instead, positioning looks directionally bullish because call activity is much stronger than put activity around the key strikes. And while that does not guarantee ACHR will rise after earnings, it does show that traders are optimistic. As a result, the stock may have less room for error, especially since shares have been rallying into earnings.
Is ACHR Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ACHR price target of $13.20 per share implies 106% upside potential.
