Shares of Ollie's Bargain Outlet Holdings Inc (NASDAQ:OLLI) were last seen up 2% at $110.11, after an upgrade from Loop Capital to "buy" from "hold," with a price-target hike to $135 from $130. The firm cited underestimated sales potential and strategic advantages for the discount retailer.
On the charts, OLLI has been falling since mid September, recently dropping below long-term support at its 200-day moving average. Fresh off five-straight negative weeks, the stock is currently hanging around breakeven for 2025.
A round of short covering could help give the shares a lift, as short interest represents 7.5% of the stock's available float, or over four days' worth of pent-up buying power. Plus, OLLI's 14-day relative strength index (RSI) of 25 sits in "oversold" territory, which points to a short-term bounce.
It's also worth noting that the equity is sporting reasonably priced options premium. Its Schaeffer's Volatility Index (SVI) of 32% ranks in the low 6th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
