Texas-based utility stock Vistra Corp (NYSE:VST) is slipping today, down 5.7% at $205.49 at last glance, after suffering a downgrade from Jefferies to "hold" from "buy." The firm also slashed its price target to $230 from $241, following the stock's meteoric rise “beyond what any bull could have predicted years ago.”
VST hit a record high of $219.73 just last session, a large jump from the $30 level it was trading around two years ago. The stock's most recent climb pushed it above a coalition of short-term moving averages, including former pressure at the 20-day trendline. Since the start of the month, the equity is still up 9.3%.
The stock already looked due for a short-term dip. This is per its 14-day Relative Strength Index (RSI) of 80.9, which sits in "overbought" territory.
Options bulls likely cheered yesterday's peak, as calls have been much more popular than usual in the options pits over the last two weeks. VST's 10-day call/put volume ratio of 2.57 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.
Options look like a good way to go when weighing in on Vistra stock's next move. The security's Schaeffer's Volatility Index (SVI) of 55% ranks in the 10th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
