Spotify Stock Slips on Potential Changes to Music Licensing

Lawmakers are mulling a change to music licensing rules

Managing Editor
Feb 26, 2019 at 9:12 AM
facebook X logo linkedin


The shares of Spotify Technology SA (NYSE:SPOT) are down 2% in electronic trading, after a Wall Street Journal (subscription required) report indicated lawmakers in Washington D.C. were toying with the idea of overhauling music licensing rules. On the charts, Spotify stock has had a rip-roaring start to 2019, adding 31.5% year-to-date, now nearing its newly formed 160-day moving average, with the shares closing Monday at $149.33.

Despite the stock's technical tenacity lately, short sellers keep coming in. Short interest nearly doubled in the last two reporting periods, and the 3.75 million shares sold short marks a record high. However, only a slim 4.6% of SPOT's total available float is sold short.

In the options pits, calls have reigned in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows speculative players have bought to open 6,637 calls in the last 10 sessions, compared to just 1,835 puts.

The good news for options traders is that its a strong time to target the streaming name. Data does suggest it would be a good time to speculate on the security with options, based on the Schaeffer's Volatility Index (SVI) of 33%, which ranks in the 6th annual percentile, hinting at low volatility expectations at the moment.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI