DDOG hit a 52-week high today
Datadog Inc (NASDAQ:DDOG) has been shooting up the charts this month, following a sharp 28.5% rise after earnings on Nov. 7. The security closed lower only three sessions since then, on track for its fifth-straight weekly win. All this positive price action led DDOG to today's 52-week high of $120.6%, though the stock has since turned lower, down 0.2% at $116.43 at last glance.
Datadog's rally might still have legs, too, as its recent peak comes amid low volatility, which has been a historically bullish combination for the stock in the past. Per Schaeffer’s Senior Quantitative Analyst Rocky White, there were three other signals over the past five years when Datadog stock was trading within 2% of its 52-week high, while its Schaeffer’s Volatility Index (SVI) stood in the 20th percentile of its annual range or lower. The shares were higher one month later after two of these signals, averaging a 4.1% gain.
When speculating on DDOG's next move, options way be the way to go. The stock's Schaeffer's Volatility Index (SVI) of 36% ranks in the low 4th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.