Bull Signal Says Tinder Parent Could Propel Higher

Still, there's plenty of pessimism surrounding MTCH

Assistant Editor
Oct 13, 2020 at 2:39 PM
facebook twitter linkedin


The shares of online dating specialist Match Group Inc (NASDAQ:MTCH) have fallen off from their Aug. 5 all-time high of $123. Still, the equity boasts an impressive 51.2% year-over-year lead, and has a fresh solid layer of support in place in the form of its 40-day moving average. Even better, Match stock is up 0.9% at $111.30, at last check, and just pulled back to a long-term area of support that could help propel the stock to fresh highs in the coming months. 

Specifically, MTCH just pulled back to its 70-day moving average after a lengthy period above the trendline. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, the security has experienced six similar run-ins over the past three years. MTCH saw positive returns 10 days after each one of these signals, averaging an 11% pop. A similar move from its current perch would put Match at $123.54 -- just north of the aforementioned all-time high.  

MTCH Chart October 13

There's plenty of pent-up pessimism surrounding MTCH, which could push the Tinder parent higher, should some of these bearish bets begin to unwind. For one, short interest is on the rise, up 9.6% in the last reporting period, and the 12.23 million shares sold short represent 22.2% of the stock's available float. In other words, it would take nearly four days to buy back these pessimistic positions.  

Switching gears, Match stock's Schaeffer's put/call open interest ratio (SOIR) of 1.45 sits in the 89th percentile of its annual range. This suggests short-term option players have rarely been more put-biased during the past 12 months.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners