Downgrade Could Spark a Yelp Stock Slide

Yelp stock has virtually gone nowhere since August

Jun 13, 2018 at 10:33 AM
facebook X logo linkedin

Yelp Inc (NYSE:YELP) was just hit with another analyst downgrade, with Aegis Capital cutting its rating to "sell" from "hold." The firm also dropped its price target to $34 from $45, lowering its revenue and EBITDA estimates through 2019 in the process. On top of that, Aegis downplayed Yelp's Request-a-Quote feature, which it believes will fail to make a meaningful impact.

YELP stock is down 4% at $40.94 on the news, as it continues to chop sideways on the charts. More downside could be ahead, though, since today's move puts its below the $41 level. This price point is approximately a 61.8% Fibonacci retracement of the security's year-to-date low-to-high, which contained the last two pullbacks.

YELP stock today

It's certainly a good time to use options to speculate on YELP's short-term trajectory. Specifically, the security's Schaeffer's Volatility Index (SVI) of 30% is just 5 percentage points from a 12-month low, showing extremely low volatility expectations priced into near-term options.

Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been upping the bearish ante, too. Yelp's 10-day put/call volume ratio across these exchanges comes in at 1.51, and ranks in the 78th annual percentile. In short, there's been an unusual appetite for long puts. During this time, the July 41 put saw heavy buying activity, meaning many are speculating on an extended slide below the aforementioned $41 mark.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI