Yeti stock could continue to heat up this summer
Now seems like a good time to bet on Yeti’s next higher move.
Actions of Yeti Holdings Inc (NYSE: YETI) outperform the broader market, up more than 33% since the start of the year. Stocks have also tended to rise over the past 12 months – given their lead of over 118% year-over-year – and now sits above its near-bar pre-earnings. of $ 90, which is five times its initial public offering. price (IPO). Considering these factors, we recommend a new long position in YETI stock.
The stock also looks ripe for a short squeeze, which could push stocks even higher. The 5.98 million shares sold short represent 7.3% of the free float of the share. It would take nearly a week to redeem these bearish bets, at the average daily trading pace of YETI.
Additional tailwinds could come from a change in option wells, which are bearish. This is the 50-day buy / sell volume ratio of YETI on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), which is in the 95th percentile of its annual range. This suggests that long put options have been more popular than usual over the past 10 weeks.
Perhaps now is a great time to purchase YETI Rewards, which are currently affordable. The Schaeffer Stock Volatility Index (SVI) of 41% sits in the 14th percentile of last year’s readings, indicating that options players are currently assessing expectations of low volatility. Our recommended call option has a leverage ratio of 4.6 and will double in value on a 22.8% increase in the underlying security.
Subscribers to Schaeffer’s Weekend Trader options recommendation service received this YETI commentary on Sunday evening, along with a detailed option trade recommendation – including full entry and exit parameters. Learn more about why Weekend trader is one of our most popular options trading services.