Downgrade Keeps Pressure on OLED Stock

OLED shares have breached their 100-day moving average

Sep 12, 2019 at 10:15 AM
facebook twitter linkedin

Universal Display Corporation (NASDAQ:OLED) touched an all-time high of $230.32 just last week, but the shares have already pulled back significantly since this peak. OLED stock suffered two huge daily slides in the sessions after the milestone, and today it's off another 7.7% at $178.26. This price action is a result of Susquehanna's note, which cut the equity's rating to "negative" from "neutral," and its price target to $130 from $210.

Looking closer, the brokerage firm believes cost increases could slow the penetration of OLED screens, specially in the smartphone market. In response, OLED has fallen below the 100-day moving average for the first time in seven months, a trendline that served as strong support during that last two pullbacks.

Most analysts are already bearish on Universal Display, with just two of the nine in coverage recommending to buy the shares. Options traders, on the other hand, have been bullish across the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The 10-day call/put volume ratio across these exchanges is 3.10, and ranks in the 88th annual percentile -- showing a stronger-than-normal demand for long calls.

While all of this has been happening, short sellers have been hitting the exits, as part of a multi-month exodus from these traders. In the last two reporting periods alone, short interest declined by 22.2%.



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1