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.



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.