Bullish Signal for Pinterest Stock Hasn't Missed Yet

An unwinding of pessimism could boost PINS

Digital Content Manager
Feb 14, 2023 at 11:43 AM
facebook X logo linkedin


Pinterest Inc (NYSE:PINS) is down 0.4% at $24.61 at last check, likely weighed down by the hotter-than-expected consumer price index (CPI) reading for January. The stock has pulled back from its Feb. 2, one-year high of $29.16, but has found a new floor at the $24 region. The good news is that this latest pullback has PINS trading near a trendline with historically bullish implications.

The trendline in question is PINS' 80-day moving average, which the stock is within one standard deviation from, at last check. Per Schaeffer's Senior Quantitative Analyst Rocky White's latest study, the equity saw two similar signals over the last three years, and was higher one month later each time, averaging a 12.5% gain. A comparable move would have the security filling its 7.8% bear gap in the last 30 days.

 PINS 40 Day

Short interest on Pinterest stock is up 8.8% over the last two reporting periods, and the 32.40 million shares sold short now make up 5.5% of PINS' available float. Should this pessimism start to unwind, shares could receive even more tailwinds.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio sits higher than 86% of annual readings, suggesting puts have been getting picked up at a faster-than-usual clip. In simpler terms, Pinterest stock could also benefit from a sentiment shift among options traders.

It's also worth noting that options are attractively priced right now. This is per the stock's Schaeffer's Volatility Index (SVI) of 53% that ranks in the extremely low 5th percentile of its annual range. It's also worth pointing out that the equity ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of 0 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.

 

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