Hims & Hers Health (HIMS) stock options traders are pricing in a sharp move ahead of the healthcare company’s earnings. With the stock trading around $26.25, we will use the $26 strike as the at-the-money straddle, with the call priced at $2.11 and the put at $1.78, for a total cost of $3.89. That implies a move of about 14.8%, giving HIMS an expected post-earnings range of roughly $22.36 to $30.14.
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The nearby strikes suggest a similar implied move. The $26.50 straddle is priced at $3.87, while the $27 straddle is $4.00, so traders are consistently pricing in a move of about $4. Positioning is fairly active around the key strikes, with the $26 call showing 1,391 contracts traded versus 740 puts. Open interest at that strike is almost balanced, with 3,167 calls and 3,136 puts, while the $26.50 strike leans more bullish, with 3,034 calls traded versus 319 puts.
Overall, the options market is clearly expecting volatility around earnings, not a small reaction. The balanced open interest near the $26 strike suggests traders are prepared for a big move in either direction, while the heavier call volume at $26.50 shows some upside interest. For investors, this means that expectations are already quite high. Therefore, a strong report could push HIMS toward the $30 area, but a weak update could quickly send the stock back toward the low-$22 range.
Is HIMS Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HIMS stock based on five Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HIMS price target of $28 per share implies 6.5% upside potential.
