Retail stock Wayfair Inc (NYSE:W) was last seen up 7.3% at $69.96, earlier hitting a 52-week high of $73.79. The company's second-quarter earnings and revenue easily surpassed estimates, with revenue growth coming in at its highest level since 2021. Overall, the quarter was a "resounding success," per CEO Niraj Shah.
On the charts, Wayfair stock has been careening higher since its early-April lows, with close support at the 20-day moving average since late April. The equity more than doubled in price on a monthly basis from May-July, and is now up 56.8% year-to-date.
Some of today's gains could be attributed to short covering. Short interest has been building despite the recent rally, and now represents 23.8% of the stock's available float.
So far today, W has seen 13,000 calls and 8,124 puts exchanged, which is triple the amount typically seen at this point. The weekly 8/8 75-strike call is the most popular, with new positions being sold to open there.
Puts have been much more popular than usual over the last 10 weeks. The stock's 50-day put/call volume ratio of 1.07 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 95% of readings from the past year.
