Western Digital Corp (NASDAQ:WDC) is up 10.6% at $786.87, and earlier nabbed a record high of $788. The stock has enjoyed an AI-fueled rally this year, and is today enjoying a halo lift from Apple (AAPL) and Intel's (INTC) partnership. Specifically, President Trump announced on Truth Social that “Apple has agreed to work with Intel to design and build its Chips in America.”
WDC is headed for a sixth-straight win. Earlier this week, Morgan Stanley hiked its price target to $650 from $488, while a week ago J.P. Morgan Securities raised its price target to $650 from $530. Since the start of the year, the equity is up 313%. Keep an eye on the shares' 14-Day Relative Strength Index (RSI), on the cusp of 80 and firmly in "overbought" territory.
A short squeeze could keep the wind at the equity's back, though. Short interest is up 9.4% in the two most recent reporting periods, and the 31.87 million shares sold short accounts for 9.3% of WDC's total available float. At the stock's average pace of trading, it would take shorts four trading days to buy back their bearish bets.
Options traders have been leaning more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), WDC's 10-day put/call volume ratio of 1.10 ranks higher than 92% of readings from the past year.
Plus, WDC sports a Schaeffer's Volatility Scorecard (SVS) of 87 out of 100, indicating the shares have consistently delivered larger moves than options traders have priced in over the past year.
