Samsara Stock Flashing Bullish Options Trading Signal

Software stock Samsara Inc (NYSE:IOT) has been unable to take advantage of the whopping 19.5% post-earnings bull gap it enjoyed in early March. The shares are down 10% in 2026, but could be ready to make dig into that deficit, after flashing a historically bullish options trading signal.

Samsara's 10-day buy-to-open put/call ratio just hit the 90th percentile and crossed over 1.0. In fact, the ratio of 7.62 -- highlighting the put skew -- now sits in the 100th percentile of its annual range.  Per Schaeffer's Senior Quantitative Analyst Rocky White, in the last three years that’s occurred six other times for the utilities name. The stock has averaged a 8.5% return 21 days later with an 67% success rate.

From its current perch, a move of this magnitude would have IOT testing its 126-day moving average again, a trendline that turned away its post-earnings pop from March. Another positive sign for contrarians is the double bottom formed from the last two months.

A short squeeze could keep the wind at the stock's back. Short interest is down 8.6% in the two most recent reporting periods, yet the 29.44 million shares sold short still account for 8.3% of IOT's total available float.

Options are the way to go, per the stock's Schaeffer's Volatility Scorecard (SVS) of 80 out of 100, which indicates Samsara has consistently realized higher volatility expectations than its options have priced in.