Peabody Energy Stock Looks Poised to Extend Rally

The equity boasts a jaw-dropping 727.7% year-over-year lead

Digital Content Manager
Apr 18, 2022 at 3:26 PM
facebook X logo linkedin

Peabody Energy Corporation (NYSE:BTU) is down 1.3% at $32.12 at last check. The last time we checked in with the Peabody Energy stock, call traders had used the mining name to triple their money. BTU still has support from the 20-day moving average, and earlier today hit its highest level since February of 2019, while boasting a jaw-dropping 727.7% year-over-year lead. What's more, there is plenty of reason to believe the stock's rally is not slowing down anytime soon.

BTU 20 Day

Digging deeper, this recent peak comes amid historically low implied volatility (IV), which has been a bullish combination for Peabody Energy stock before. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been five other times in the past five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its annual range or lower. This is currently the case with BTU's SVI of 89%, which stands in the relatively low 10th percentile of its 12-month range.

White's data shows that one month after these signals, the security was higher 80% of the time, averaging an impressive 14.7% return for that period. From its current perch, a move of similar magnitude would place Peabody Energy stock just shy of the $37 mark.

A short squeeze could also keep the winds blowing for BTU. Short interest rose 22.7% in the last two reporting periods, and the 12.19 million shares sold short now make up for 8.9% of the security's available float. 

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 99 out of a possible 100. This means Peabody Energy stock has managed to exceed volatility expectations during the past year -- a boon for option buyers. 


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI