GitLab Inc (NASDAQ:GTLB) shares are surging 5.5% to trade at $21.46 ahead of the opening bell, after the company said its expanded its partnership with Alphabet's (GOOGL) Google. Specifically, the company will showcase GitLab Duo AI with Vertex AI on Google Cloud.
GTLB has struggled long term, shedding 52% over the past 12 months, with added overhead pressure at the descending 50-day moving average. In fact, the equity is attempting to bounce off its April 10, record low of $18.73, with today's gains putting the stock on track for a third-consecutive win.
The software name is ripe for upgrades, with 16 of the 28 covering brokerages sporing a "hold" or worse recommendation. Short interest is ripe for a squeeze as well, up 40.5% over the past two reporting periods and now accounting for nearly 12% of the stock's available float.
Options are looking affordable, per the stock's Schaeffer's Volatility Index (SVI) of 66%, which sits in the 33rd percentile of its annual range. In other words, options traders are pricing in unusually low volatility expectations.
Lastly, GitLab stock's Schaeffer's Volatility Scorecard (SVS) comes in at 18 out of 100. In other words, shares have consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.
