Peloton Interactive Inc (NASDAQ:PTON) stock is up 10.7% to trade at $6.84 at last check, following an upgrade from UBS to "buy" from "neutral," which came alongside a lofty price-target hike to $11 from $7.50.
There is still plenty more room for bull notes, as 13 of the 22 analysts in coverage sport a "hold " or worse rating. The stock could also benefit from a short squeeze, as short interest makes up 18.7% of its available float.
Though it is now pacing for its best day since June 4, Peloton stock still carries a 22.4% year-to-date deficit. The shares have been struggling to conquer resistance at $7 since a June 17 bear gap, with additional pressure from the descending 120-day moving average. Longer term, the equity sports an 84.7% year-over-year lead.
Options traders are leaning more bullish than usual. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 12.13 sits higher than 98% of readings from the past year.
Today's upgrade is making bulls even bolder, with 19,000 calls traded so far -- 4 times the volume typically seen at this point -- compared to 3,046 puts. The most active contract is the weekly 8/1 7-strike call, where new positions are being bought to open.
