Schaeffer's 43rd Anniversary Stock Picks in 2024

Skechers Stock Snags Fresh High on Double Dose of Bull Notes

Short-term options look attractively priced right now, too

Managing Editor
Dec 18, 2019 at 1:34 PM
facebook X logo linkedin

Sneaker name Skechers USA Inc (NYSE:SKX) is enjoying a 3% lift this afternoon, now trading at $42.69 -- just off an annual high of $42.98 -- after receiving a double dose of bull notes. Deutsche Bank initiated a "buy" rating and $49 price target, while UBS raised its own price target by $1, to $49. The matching price targets represent an 18.4% upside to Tuesday night's close, and are in-line with the overall optimistic analyst outlook on the equity, where six of the nine firms in coverage sport a "strong buy" recommendation.

SKX has been climbing higher in 2019, most recently recovering from its late-August lows. Now back in annual high territory, the equity hosts an impressive 86% year-to-date lead, with a layer of support having stemmed from the ascending, 40-day moving average.

Digging deeper, the stock's Schaeffer's put/call open interest ratio (SOIR) comes in at 1.10, and ranks in the 80th percentile of its annual range. In simpler terms, this shows a larger-than-usual put-skew among options traders.

Lastly, short-term options premiums on Skechers stock look relatively cheap at the moment, based on the equity's Schaeffer’s Volatility Index (SVI) of 28%. This ratio ranks in the bottom-most percentile of its annual range, meaning those looking to speculate on SKX with options, should do so now.


A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!