'Competitive Threat' Warning Wallops Nutanix Inc (NTNX) Stock

Nutanix Inc (NTNX) continues to reel from recent record-high levels

Oct 14, 2016 at 10:11 AM
facebook twitter linkedin


Wall Street newcomer Nutanix Inc (NASDAQ:NTNX) has taken a step back this morning, after Summit Redstone Partners weighed in bearishly. Specifically, the brokerage firm initiated coverage on the stock with a "sell" rating and a $16 price target -- a 53% discount to current levels. "We think the competitive threat to Nutanix is real and cannot be overlooked," explained Summit Redstone in a note, adding that "the euphoria ... may not last."

As alluded to, shares of the enterprise cloud concern are getting hitting hard, down 1.7% at $34.12. Since hitting a record high of $46.78 on its second day of trading, less than two weeks ago, NTNX has plunged 27%.

Today's losses could leave bullish options bettors kicking rocks. In terms of open interest, Nutanix Inc's (NASDAQ:NTNX) most popular strike has been the deep out-of-the-money October 40 call. Based on data from Trade-Alert, a sizable portion of these positions were bought to open, hinting at expectations for an extended run beyond the round-number level. But with the stock diving, delta on the option has sunk to just 0.13, or 13%.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners