Upgrade Keeps IRBT Stock Moving Higher

An unwinding of pessimism could keep the wind at the stock's back

Jan 16, 2020 at 10:12 AM
facebook twitter linkedin


The shares of iRobot Corporation (NASDAQ:IRBT) are sporting a 7.7% gain this morning to trade at $57.51, putting them on pace for their best close since October and a second straight finish atop the 100-day moving average after roughly nine months below the trendline. Today's upside is coming thanks to an upgrade to "market perform" from "underperform" at Raymond James.

But IRBT stock has been on the rise before today, too, since this would mark a third straight winning session for the electronics concern. The shares are trying to recover from a disappointing 2019, and more bullish attention from analysts could keep the momentum going. For instance, eight of the 10 covering brokerage firms have "hold" or "strong sell" ratings on the security, leaving the door wide open for more upgrades to come through going forward.

And even though interest in call options has picked up somewhat recently, short-term traders do remain put-skewed, based on the Schaeffer's put/call open interest ratio (SOIR) of 1.02. As such, further gains on the charts could prompt some of these put traders to close their positions, which would likely help iRobot stock.

Then there's short interest, which remains extremely elevated. Almost nine days' worth of buying power is held by IRBT short sellers, based on average daily trading volumes, hinting at plenty of buying power that's on the sidelines and could come in to push the shares higher.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners