JB Hunt (JBHT) reporting earnings on 10/15 before the open and bullish flows on 10/11 with buyers of 2,275 November $170 calls for $6.40 to $6.60 to open. Yesterday’s action ran 17X average for the name and IV30 up 7%. It is the only notable flows in open interest. Shares have traded higher in each of the last three and seven of the last nine reports. The average closing move is 3.5% and the max move was 9.75%. The current implied move is 4%. The Street is looking for $1.79 on $3.01B from the company, a 22% increase Y/Y. Next quarter is guided to $1.92 and $3.16B, a 15% increase, while the FY is guided to a 22% increase to $6.66 and $11.74B. The $18.15B company trades 21.7X earnings, 1.7X sales, and 32X cash with a small yield. JBHT is coming off a strong quarter with strong rates driven by continued strong demand and tight capacity. They expect these conditions to continue into their peak season and early 2022 as inventories remain low and supply chain disruptions continue throughout a number of end-markets. JBHT has focusing on incentivizing faster box turns with customers as well which will help yields. Analysts have an average target for shares of $170 with a Street High $205. JP Morgan cut to Underweight on 10/8 as the stock is highly correlated with spot truckload rate momentum, which turned negative in early July. However, J.B. Hunt continues to trade a record premium to full truckload equities. Short interest is 1.67%. Hedge fund ownership fell 7% last quarter. Durable Capital a top holder of stock with 3.2M shares.