Restaurant Stock Could Climb Closer to Record Highs

There's been a fierce appetite for calls lately

Digital Content Manager
May 10, 2023 at 1:13 PM
facebook X logo linkedin

Darden Restaurants, Inc. (NYSE:DRI) stock is down 1.5% at $148.10 at last check, after news the company will acquire the parent of Ruth's Chris Steak House for $715 million. This negative price action isn't likely to last, though, as a pullback from the $154 area has placed DRI near a trendline that has generated tailwinds in the past. While the security already sports a 16.9% year-over-year lead, a rally would help it build upon its 7.1% gain for 2023.
The trendline in question is DRI's 80-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White's last study, the stock saw seven comparable signals during the past three years, and was higher one month later 71% of those times, averaging a 9.7% gain. A similar move would place Darden Restaurants stock above $162 for the first time since its September 2021 record highs.


 DRI 80 Day 

Options bulls seem to be in on the secret, as there's been an appetite for calls lately. This is per DRI's 50-day call/put volume ratio of 2.13 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than all readings from the last 12 months.

Weighing on the stock's next moves with options could be an excellent idea, given its Schaeffer's Volatility Index (SVI) of 20% stands in the low 4th percentile of readings from the past year. This means premiums are affordably priced right now.


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