Seagate Technology Holdings PLC (NASDAQ:STX) stock is 15.2% higher to trade at a $428.21 at last glance, earlier touching a record $438.88 after the company reported better-than-expected results for the fiscal second quarter. The tech name also issued a strong fiscal third-quarter outlook amid AI data center demand. In response, nine analysts raised their price objectives, including T.D. Cowen and Rosenblatt to $500 from $340 and $370, respectively.
On track for its third-straight gain, STX is now eyeing its best single-day percentage pop since Oct. 29. The security is extending a bounce off the 50-day moving average and now boasts a 331.9% year-over-year lead.
An unwinding of pessimism could create additional tailwinds. This is per the the stock's 10-day call/put volume ratio of 1.03 over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 88% of annual readings. Echoing this, 6% of STX's available float is currently sold short, indicating there's room for a short squeeze.
Overall options volume is running at 10 times the intraday average volume in the first half hour of trading, with 15,000 calls and 24,000 puts traded. The most active contract is the weekly 1/30 390-strike put, where new positions are being opened, followed by the 490-strike call in the same series.
It's also worth noting equity's Schaeffer's Volatility Scorecard (SVS) sits at 93 out of 100, suggesting it has consistently realized higher volatility than its options pits have priced in.
