Q2 STOCKS TO BUY

Chewy Stock Pops on Big Upgrade

CHWY stock hit a record low on Friday

Sep 23, 2019 at 9:57 AM
facebook X logo linkedin


Chewy Inc (NYSE:CHWY) stock plunged 10.5% last week -- and tagged a record low of $26.29 on Friday -- after the online pet retailer reported a larger-than-anticipated second-quarter loss. This morning, though, CHWY shares are up 3.6% at $27.35, after Nomura Instinet upgraded the stock to "buy" from "neutral," calling concerns over Chewy "overblown," and saying it is "confident that the core business continues to perform."

Options traders have remained upbeat during CHWY stock's recent slide. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculative players bought to open 21,843 calls over the last 10 days, compared to 17,978 puts.

This heavy call-skew is seen in the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.44, too, which shows calls more than double puts among options expiring in three months or less. The October 35 call is home to peak front-month call open interest of 5,290 contracts, and data from the major options exchanges confirms mostly buy-to-open activity here.

Given how shorted Chewy stock is, it's possible some of the activity at this out-of-the-money strike is a result of short sellers hedging against any upside risk. Short interest on CHWY spiked 16.8% in the most recent reporting period to a record 9.96 million shares. This represents 22.3% of the equity's available float, or 2.4 times the average daily pace of trading.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter