Delay in phone upgrades puts pressure on Verizon shares

Verizon Stock, Verizon Communications Stock, VZ Stock

The company also missed expectations for second-quarter revenue

Verizon Communications Inc. (NYSE:VZ) reported a second-quarter revenue miss this morning amid a slowdown in phone upgrades as cash-strapped consumers hold on to their devices longer. The stock was last down 6.3% to $39, wiping out better-than-expected subscriber growth.

VZ previously fell to its lowest level since April after its latest rally remained below $42.50, but a familiar bottom at $38.50 appears poised to limit losses. While shares are headed for their worst one-day percentage loss since July 2023, they still have a nine-month lead of 23.7%.

Options volume is six times the average intraday volume, with 35,000 calls and 33,000 puts traded so far today. The most popular contract is the weekly 7/26 39-strike put, followed by the 70-strike call in the same series, with positions currently opened on both.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), the stock’s 10-day put/call volume ratio is higher than 98% of past year’s readings. This means puts have been snapped up much faster than normal.