Skechers Stock Snags Fresh High on Double Dose of Bull Notes

Short-term options look attractively priced right now, too

by Emma Duncan

Published on Dec 18, 2019 at 1:34 PM

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 Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Billion-Dollar AT&T Loan Boosts Stock
T announced at $5.5 billion term-loan agreement today
SHOP Stock Fails to Shake Off Downgrade
Raymond James downgraded Shopify to "market perform" from "outperform"
The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.