In mid-June,
TASER International, Inc. (NASDAQ:TASR) hit a record peak of $35.95. Ever since, the shares have struggled, dropping 34%. Today, though, the shares have jumped 5.6% to $23.61, on news of a video management partnership with Microsoft Corporation (NASDAQ:MSFT) for law enforcement, which will utilize the latter's cloud capabilities. MSFT is also higher, gaining 0.8% at $53.28.
Looking at the data, TASR could see extended gains if bearish traders hit the bricks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.23 is only 1 percentage point from an annual high. This means
put buying has almost never been more popular during the past 12 months, relative to call buying.
TASR's Schaeffer's put/call open interest ratio reinforces the recent put bias. The current reading of 0.61 is higher than 92% of all comparable readings from the past year. This tells us that the security's short-term speculators have taken an
unusual interest in puts.
Moreover, pessimism extends beyond the option pits. Short interest accounts for 29% of the equity's float. At TASR's average daily volumes, it would take these traders almost 11 days to buy back their bets.
It's not like analysts are crazy about TASR, either. Four of the six covering brokerage firms
rate the stock a "hold."
However, looking at the charts, it appears TASER International, Inc. (NASDAQ:TASR) has found a solid foothold atop its 80-week moving average. The electrical weapon manufacturer will report earnings before the open next Tuesday.