Don't Bet on a Finisar Stock Comeback

Put players have seemingly been taking the right approach on Finisar stock

Jul 2, 2018 at 2:37 PM
facebook X logo linkedin


When Finisar Corporation (NASDAQ:FNSR) fell after earnings a few weeks back, we called out long-term resistance at the 30-week moving average. But looking at a daily chart now, technical traders should note the stock's 160-day moving average, based on data from Schaeffer's Senior Quantitative Analyst Rocky White. White points out that FNSR has had meet-ups with the 160-day similar to the current setup six times since 2008, and the equity has never been higher a month later. On average, the shares have shed 12.9% after running into the trendline.

finisar stock today

The equity was last seen trading around $18.24, so a similar pullback this time around would put it at $15.89. Finisar struck a two-year low of $14.25 back on April 4, and has shed 30% year-over-year. Further illuminating this technical weakness is the fact that FNSR has failed to take advantage of a 10% decline in short interest over the past two reporting periods.

Despite all this, analysts remain mostly upbeat. There are 11 brokerage firms in coverage on the stock, and six say to buy it. Meanwhile, the average 12-month price target of $21.18 represents a more than 16% premium to current levels. As such, future downgrades and/or price-target cuts seem like a real threat.

A number of options traders have already gotten a jump on Finisar, based on its 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). At 4.86, this reading comes in at an annual high, showing put buying has been much more popular than normal recently.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI