Options traders are call-heavy on CAT and NVDA stocks
Analysts are weighing in on technology concern Nvidia Corporation (NASDAQ:NVDA), construction equipment manufacturer Caterpillar Inc.(NYSE:CAT), and streaming entertainment company Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes on shares of NVDA, CAT, and NFLX.
Bank of America Boosts NVDA Outlook
Bank of America-Merrill Lynch raised its
NVDA price target to $210 from $185, citing expectations for the tech company to expand its footprint in the booming healthcare industry. The semiconductor stock was last seen trading up 3.4% at $186.16, and earlier set a new record high of $188.43. NVDA now boasts an impressive year-over-year gain of 192.4%.
Like analysts, options players are upbeat toward NVDA. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NVDA sports a 10-day call/put volume ratio of 1.31, which ranks in the 70th percentile of its annual range. This suggests options traders are favoring bullish bets over bearish by a wider-than-usual margin.
Caterpillar Leads Dow After UBS Upgrade
UBS upgraded Caterpillar's stock to "buy" from "neutral," and raised its price target to $140 from $116. CAT is trading up 1.7% at $123.48, after earlier setting a new all-time high of $124.43, and is the top gainer on the Dow Jones Industrial Average (DJIA) this morning. Year-to-date, the heavy equipment maker is up more than 33%.
Speculators have rarely been more upbeat on CAT, which carries a 50-day call/put volume ratio of 1.03 across the ISE, CBOE, and PHLX. This ratio ranks in the 100th annual percentile, as calls have been bought to open over puts at one of the fastest rates of the past year.
NFLX Gets a Boost from MoffettNathanson
MoffettNathanson raised its
NFLX price target to $140 from $136 before today's open, while reiterating its "neutral" rating. The FAANG stock is up 0.9% at $183.94, bringing its year-over-year gain north of 87%. Given the strong price action, most analysts following NFLX stock are already optimistic; 64% have doled out "buy" or "strong buy" recommendations.