Investors found their perfect fit with Match Group this year. The stock of the parent company of dating sites including Tinder, Hinge and OkCupid has surged more than 66% in 2019.
But like any relationship, Match Group and the market have had their ups and downs, and right now, the two have hit a rough patch.
Match Group is down more than 20% since its last earnings report in August, and heads into Tuesday afternoon's report with certain aspects of its future in limbo. Match's parent company, InterActiveCorp, is moving forward with plans to spin off the online dating company, prompting options traders to bet on more heartbreak ahead of the earnings release.
Options trading volume in Match surged on Monday to twice its average. In the stock's most active contract, traders were more than willing to make bets that Match's honeymoon is over.
"There were sellers, to close, of the November 85 calls when the stock was about $71.50," Risk Reversal Advisors co-founder Dan Nathan said Monday on CNBC's "Fast Money." "So [these traders were] closing out some prior bullish bets with the stock at lower levels."
The options market is implying a post-earnings move of about 11% in either direction, which is slightly less than the average move of 14% over the last four quarters.
While not particularly inflated in relation to past post-earnings moves, this kind of price action — coupled with investors bailing on previously bullish bets — suggest that the market is starting to get cold feet in a stock that might have moved too far, too fast this year.
"When you look at the one-year chart, and you look at this support level [around $66] the stock is sitting on right here, obviously there's a little short interest, there's some bearish sentiment near term. So to me, this thing is going to go one way or the other. I suspect, if you're looking to play, you want to define your risk," said Nathan.
Match Group was trading down 1.5% on Tuesday morning.