Despite recent volatility, GOOS shares have a solid YoY lead
Winter weather apparel maker Canada Goose Holdings Inc (NYSE:GOOS) just opened its first store in China to much fanfare, but Apple's (AAPL) warning about the country's economy may have some investors concerned about the retailer's prospects there. Susquehanna in a note said there's nothing worry about with GOOS, though, expecting a "long runway for growth" for China and other regions. The firm also said sector peers Lululemon Athletica (LULU) and VF Corp (VFC) should be fine in China.
So far today GOOS shares are trading up 3.7% at $48.50, extending their recent bounce from the newly formed 320-day moving average. Approaching the two-year anniversary of its initial public offering (IPO), the stock has zig-zagged in recent months, but boasts a 12-month gain of roughly 42%.
As for options activity, call buying has remained dominant. In the past two weeks, the equity's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has risen from 1.58 to 2.90. In other words, call buying has nearly tripled put buying.
Something else to watch with Canada Goose is rising short interest levels. While off a low basis point, there was a 47% jump in short interest during the past two reporting periods on GOOS, and the 4.84 million shares held by these bears marks an all-time high for the young stock.
