Wayfair Stock Bounces Back from Walkout Drama

Wayfair employees are planning a walkout today over alleged sales to child detention facilities

Managing Editor
Jun 26, 2019 at 10:01 AM
facebook twitter linkedin


As criticism mounts over the state of U.S. migrant camps, furniture firm Wayfair Inc (NASDAQ:W) has found itself in the middle of it. Today, hundreds of employees are planning a walkout after the retailer allegedly sold $200,000 in bedroom furniture to a Texas detention facility for migrant children.

A Twitter account called "Wayfairwalkout" was created earlier this month, and includes support from national political figureheads Alexandria Ocasio-Cortez and Elizabeth Warren. While Wayfair stock dropped 5.3% in response to the news yesterday, it is up 0.7% to trade at $145.52 today. The shares boast a 61% lead in 2019, but since a March 21 high of $173.47, have traded in a tight range between the $140 and $165 levels. 

Should Wayfair stock extend today's positive price action, continued short covering could create near-term tailwinds. Short interest already fell 4.6% in the two most recent reporting periods to 12.68 million shares. Yet this still accounts for a whopping 21% of W's total available float, and 7.6 times the average daily trading volume.

Traders betting on the next leg higher should consider short-term options, which can be purchased for a bargain at the moment. The equity's Schaeffer's Volatility Index (SVI) of 48% is in the 15th percentile of its annual range, suggesting near-term options are pricing in relatively low volatility expectations for W shares.

Plus, investors will be pleased to know that W sports a Schaeffer's Volatility Scorecard (SVS) of 92 out of a possible 100. This indicates the furniture stock has handily exceeded options traders' volatility expectations in the past year -- a boon to would-be premium buyers.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners