Wayfair Stock Takes Off as Analyst Praises Attractive Entry Point

Puts have been preferred by Wayfair option traders

Managing Editor
Aug 22, 2019 at 9:34 AM
facebook X logo linkedin

Online furniture retailer Wayfair Inc (NYSE:W) is surging right out of the gate this morning, already up 3.3% at $118.88, after receiving a fresh bull note from Stifel. The brokerage firm upgraded to a "buy" from "hold," with a $150 price target, saying the stock's recent 12% drop made an attractive entry point for buyers. 

Interestingly, the stock's Schaeffer's Volatility Index (SVI) of 45% ranks in the bottom 10th percentile of its annual range. In other words, short-term W options are attractive right now, as they are pricing in relatively low volatility expectations.

Looking closer at options, data from the  International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) show W with a 10-day put/call volume ratio of 2.74, which ranks in the 94th annual percentile. This indicates puts have been purchased over calls at a faster-than-usual clip, leaving the door wide open for call buyers to enter the ring.

There also looks to be plenty of room for more bull notes on Wayfair stock. Coming into today, 14 of 23 analysts carry a tepid "hold" or "strong sell" rating. Also of interest, more than 20% of the stock's total available float is sold short, meaning it would take short sellers nearly nine days to buy back their bearish bets.

While shares of Wayfair stock have struggled in recent weeks, the equity remains 27.7% higher year-to-date, and more than 45% above its Christmas Eve bottom of $78.86. W is also eyeing its sixth straight close higher.


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