Subscribers to Schaeffer's Weekend Trader options recommendation service received this SN commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
After the appliance company’s most recent earnings report, SharkNinja Inc (NYSE:SN) stock found support at the $114-$115 range, which is the site of its 2024 and February highs. With shares now sporting a roughly 20% year-to-date lead following a pullback to the 20-day moving average, we're recommending a bullish position on SN.
Options traders lean bearish toward the security, indicating a sentiment shift could generate tailwinds. This is per SN’s 50-day put/call volume ratio of 1.94 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 91% of readings from the past year.
Options look affordably priced, too, making this an excellent time to bet on the equity's next move. In fact, SharkNinja stock’s Schaeffer's Volatility Index (SVI) of 41% stands in the 14th percentile of readings from the past year. The equity has also tended to outperform volatility expectations over the past year, as suggested by its Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.
It’s also worth noting that there is potential for a short squeeze back to the 130-strike call, after the equity held the peak call open interest (OI) level. Our recommended call option has a leverage ratio of 7.64 and will double on a 13.8 % rise in the underlying security.
