Tyson Foods (TSN) is a producer of food products with over 113,000 employees. The company’s stock is currently trading around $43.75 in a 52 week range of $37.10-$47.71. The stock has performed relatively well this year with shares rallying 9.18% year to date. The company is set to report their most recent quarterly warnings on Monday morning before the opening bell and all indications are pointing to a possible move higher in the stock.
TSN has rallied 7 of the past 12 quarters on earnings day with an average move of 5.29%. The stock has also rallied from earnings day to expiry 9 of the past 12 quarters with an average move of 7.67%. The stock has also maintained a solid bull trend since it last released earnings. The stock is trading inside of the Ichimoku Cloud but the cloud is upward sloping. The stock is trading slightly lower today but the trend this cycle has been for stocks to trade in the opposite direction after the release suggesting that TSN may be higher on the open on Monday. With the stock at current levels the options market is implying a move of around $3.35 implying a move of around 7.6% by December expiration.
Using that implied move and taking into consideration the bullish chart and historical movement a move in TSN to the upside target of $47.10.
As a possible trade setup a trader could look for call spreads into the close of today session targeting the implied upside target.