Options Traders Should Bet on an InMode Stock Rally

The stock boasts affordable premium, too

Deputy Editor
Nov 4, 2022 at 12:18 PM
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InMode Ltd (NASDAQ:INMD) stock continues to trade well below its October 2021 peak peak of $99.27, and was today seen 0.7% higher at $33.76. Shares of the medical technologies company have struggled to topple $38 ever since falling below the level in April. However, INMD boasts a 16.2% lead in final quarter of 2022, and, should history be an indicator, there's a chance the equity could cut into its 52% year-to-date deficit.

Digging deeper, InMode stock just pulled back to a historically bullish trendling, now trading within one standard deviation of its 80-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White, INMD experienced three similar signals in the last three years, and was higher one month later each time, averaging an impressive 21.8% gain. A move of similar magnitude would place the stock above $41 per share, or levels not seen since March.

 

INMD Chart November 042022

The good news for options traders is the stock is seeing attractively priced premiums at the moment, per INMD's Schaeffer's Volatility Index (SVI) of 67% that sits in the 16th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 90 out of 100, meaning InMode stock has exceeded option traders' volatility expectations during the past year.

 

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