Buy the Dip on this E-Tailer Stock

A bullish signal flashing for ETSY has never been wrong

Managing Editor
Aug 28, 2020 at 3:02 PM
facebook twitter linkedin


Earlier this month, we profiled Etsy Inc (NASDAQ:ETSY) ahead of its corporate report. While the shares scored a record high of $141.41 less than five days after earnings, the last week has been rough on ETSY, which at last check was 2.7% lower at $119.04. Nevertheless, this 8.7% pullback week-to-date has brought the e-tail stock back to its 40-day moving average, a trendline with historically bullish implications. 

Daily Stock Chart ETSY

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Etsy  shares have pulled back to this moving average four times in the last three years. One month after the signal, they have averaged a gain of 12.1%, and have been positive 75% of the time. This is the same trendline referenced last month, that caught pullbacks in June and July .

There's plenty of buying power on the sidelines to help fuel the stock's fire, too. Short interest increased by 13.8% in the most recent reporting period to 7.83 million shares, and accounts for a healthy 6.7% of ETSY's total available float.

It's also an attractive time to purchase premium on ETSY options, with the stock's Schaeffer's Volatility Index (SVI) of 54% perched in the relatively tame 18th annual percentile.Additionally, the security's Schaeffer's Volatility Scorecard (SVS) is lofty, sitting at a whopping 98 out of 100, which means Etsy stock has tended to exceed option traders' volatility expectations during the past year, a boon for option buyers.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners