Unity Software Inc (NYSE:U) stock is up 0.5% to trade at $45.10 this morning, cooling slightly from its early morning surge after the video game software company announced a partnership with Google to develop an AI-powered Unity Spark game creation platform. The integration with Google's Playground and Play Games services will launch later this year. Sector peer Roblox (RBLX) is 1.7% lower, in response.
Unity stock has reclaimed its year-to-date breakeven level this week. The round $40 level stepped up as support last month, though the 26% year-over-year area could be tough to clear, as it was in late August.
A short squeeze could be in play. Short interest dropped 16.5% in the most recent reporting period, yet the 29.12 million shares sold short still accounts for 7.5% of U's total available float.
Options traders have strong call bias. The stock sports a 10-day call/put volume ratio of 10.55 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the elevated 90th percentile of its annual range.
The good news is options are affordably priced, per the Unity's Schaeffer's Volatility Index (SVI) of 54% that stands in the sixth percentile of annual readings.
