Options traders have been leaning bearish in the month
Software concern Samsara Inc (NYSE:IOT) is trading 5.1% lower at $29.64 at last glance, adding to its extensive pullback from its early June 2026 high. In the month of June, IOT has suffered a loss in 14 of its 18 sessions. This week the shares broke below the 80-day moving average, adding to its 16% year-to-date deficit. All is not lost, however, as a historic bull signal is now flashing on the data operations stock.
IOT sports a 10-day put/call volume ratio of 1.93 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 92% of readings from the past year.
There has been eight instances in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, IOT was higher one month later 63% of the time after these signals with an average 8.2% return. From its current perch, this would put the stock back near $32.
A short squeeze could keep the wind at the equity's back. Short interest increased by 15% in the most recent reporting period, and the 41.26 million shares sold short account for 11.5% of IOT's total available float. At the stock's average pace of trading, it would take shorts almost seven trading days to buy back their bearish bets.
Options look like an affordable route. Samsara stock's Schaeffer's Volatility Index (SVI) of 63% sits in the 32nd percentile of its annual range, meaning near-term option traders are pricing in relatively low volatility expectations.