The security pulled back to a historically bullish trendline
Yeti Holdings Inc (NYSE:YETI) stock is down 7% at $41.15 at last check, as broader market headwinds continue to blow on Wall Street. The security boasts a 31.5% year-over-year lead, however, and a familiar floor at the $40 region looks ready to put a stop to today's losses. The equity is also flashing a historically bullish signal, meaning this could be the perfect opportunity to buy the stock at its lowest level since August.
Specifically, Yeti stock staged a dramatic pullback to its 80-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, YETI saw six similar signals during the past three years. The stock finished higher one month later 60% of the time with an average 6.6% gain. A comparable move from its current perch would place the shares just shy of $44.
An unwinding of pessimism could also give Yeti stock a boost. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity carries a 50-day call/put volume ratio of 1.28 that sits in the 98th percentile of annual readings. This means long puts are getting picked up at a faster-than-usual clip.
It's also worth noting the equity's Schaeffer's Volatility Index (SVI) of 40% sits in the low 15th percentile of its annual range, suggesting options traders are currently pricing in low volatility expectations.