CZR's recent highs come amid historically low implied volatility (IV)
Casino name Caesars Entertainment Inc (NASDAQ:CZR) is up 1.3% to trade $58.51 at last check, and pacing for its third-straight daily win. The stock scored a one-year high of $58.56 earlier today, and sports a 40.6% year-to-date lead. What's more, it looks like CZR's rally is not even close to being done, thanks to a signal with historically bullish implications.
Per Schaeffer's Quantitative Analyst Rocky White, Caesars Entertainment stock's recent highs come amid historically low implied volatility (IV), which has been a bullish combination in the past. White's data shows five other signals in the last five years when CZR was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.
This is currently the case with the stock's SVI of 47%, which stands at the low 15th percentile of its annual range. One month after these signals, the shares were higher 80% of the time to average a 3% pop. From its current perch, a move of comparable magnitude would put the security above $60 for the first time since May 2022.
Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 3.20 stands higher than 78% of readings from the last 12 months. This indicates calls have been getting picked up at a quicker-than-usual clip during the past two months.