Q2 STOCKS TO BUY

Switch Call Options Pop After Rare Upgrade

Switch's options pits are unusually active today

Nov 15, 2018 at 2:54 PM
facebook X logo linkedin


Raymond James upgraded Switch Inc (NYSE:SWCH) to "strong buy" from "market perform," while maintaining its $11.50 price target -- a nearly 63% premium to last night's close. The brokerage firm said SWCH shares look "compelling" following yesterday's earnings-induced bear gap, and the data center operator's "assets have significantly better operational potential than the current price reflects."

After plunging 23.7% Wednesday on a negative earnings reaction -- and hitting a record low of $7 in intraday trading -- SWCH stock is up 11.6% today to trade at $7.89, set for its biggest one-day gain on record. Nevertheless, the shares have been in a long-term downtrend, off 56.6% year-to-date.

switch stock daily chart nov 15

Not surprisingly, sentiment toward SWCH is mostly skeptical, with the majority of analysts in coverage calling the stock a tepid "hold." Plus, the 7.75 million shares sold short represent a healthy 17.3% of the stock's available float.

However, bulls are blasting Switch's typically quiet options pits today. Roughly 760 calls and 360 puts have changed hands so far, more than double the average daily amount. Speculators may be buying to open new positions at the November 8 call for a volume-weighted average price of $0.10, which would make breakeven for the call buyers at tomorrow's close $8.10 (strike plus premium paid).

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter