Sea Stock Signal Says Software Name is Ready to Surge Higher

There is a large put-skew ready to be unwound among options traders

Managing Editor
Jan 31, 2020 at 12:57 PM
facebook X logo linkedin


Software name Sea Ltd. (NYSE:SE) more than tripled in 2019, and over the last few months have been on a steady trend higher. Just last week SE touched a record high of $46.50, and is not far off this afternoon, trading at $45.24 at last check. With a layer of support embedded in the rising 20-day moving average, and the shares now up 222% year-over-year, its no surprise that a new bull signal is flashing for the equity. 

Daily SE with 20MA

SE's surge comes amid historically low implied volatility (IV) -- a combination that has been bullish for the stock in the past. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been three other instances in the past five years when Sea stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th annual percentile or lower -- as is the case with Sea stock's current SVI of 44%, in the 9th percentile of its 12-month range. These levels conjured up an average 21-day surge of 8.9%, with all of the returns positive.

In the options pits, the stock's Schaeffer's put/call open interest ratio (SOIR) ranks in the 74th percentile of its annual range. In simpler terms, this shows a larger-than-usual put-skew among options traders. An unwinding of these bearish bets could trigger a surge in SE shares.
 

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