Social Media Stock's Rally Could Have Legs

META is flashing a bull signal that has never been wrong

Digital Content Manager
Oct 11, 2023 at 3:06 PM
facebook X logo linkedin


Meta Platforms Inc (NASDAQ:META) stock is up 1.2% at $325.62 at last check, and earlier scored a fresh one-year high of $328.82 as it paces for a fourth-straight daily win. The security boasts an impressive 170.8% year-to-date lead, with support coming from the $290 region. Plus, the equity is giving off a signal that has historically generated bullish returns.

META Intraday

Per Schaeffer's Quantitative Analyst Rocky White, Meta Platforms stock's 52-week high comes amid historically low implied volatility (IV), which has been a bullish combination in the past. White's data points to four other signals over the last five years when META was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) was in the 20th percentile of its annual range or lower.
 
This is now the case with the security's SVI of 32%, which ranks in the 17th percentile of its annual range. The shares were higher just one month after each of these signals, averaging a 4.3% pop. From its current trading level, a move of similar magnitude would place META back above $339 for the first time since January 2022.
 
The security looks ripe for a short squeeze, which could keep this rally going. The 20.65 million shares sold short make up a massive 70.6% of Meta Platforms stock's available float.
 

Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), META carries a 50-day put/call volume ratio that ranks in the 99th percentile of readings from the past year. This means long puts have been picked up at a quicker-than-usual clip, and a shift in sentiment would bode well for the shares.

 

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