Earlier today, United Parcel Services reported that chairman and chief executive officer Mike Eskew will step down at the end of the year and will be replaced by Scott Davis, currently the company's vice chairman and chief financial officer. Continuing with the executive shuffle, UPS named Kurt Kuehn to replace Davis as chief financial officer.
Since hitting a low in September, the shares of UPS have edged more than 4% higher along their 10-day and 20-day moving averages. However, the stock must still overcome resistance in the 79 area, which has capped the shares since early August. From a longer-term perspective, potential support is rising into the region in the form of the security's 20-week moving average, which it has not closed a week below since the beginning of June.
Options speculators are relatively skeptical of the shares. Schaeffer's put/call open interest ratio for UPS stands at 0.66, which is higher than 70% of those taken during the past 52 weeks. In trading today, the October 75 call was the most active front-month contract with nearly 1,800 contracts changing hands. Open interest currently stands at almost 34,000 contracts. Meanwhile, on the put side, the October 75 put was the most active with only 235 contracts changing hands. Open interest stands at 16,200 contracts.