Wayfair Stock Retreats From Record Highs Despite Bull Note

The equity is still up 130% year-to-date

Deputy Editor
Jul 14, 2020 at 11:05 AM
facebook twitter linkedin


The shares of Wayfair Inc (NYSE:W) are down 0.9% to trade at $208.72 at last check, shaking off an upgrade from Wedbush to "outperform" from "neutral." The firm also added a price-target hike to $240 from $165, noting the movement back towards online goods amid the spike in coronavirus cases, while expecting home-related spending to continue to broaden. 

The $230 region kept a cap on breakouts, as the stock traded sideways near its July 8 all-time high of $230.92. The 20-day moving average has been a layer of support, though. today the stock has fallen below that trendline. Regardless, W is still up around 130% in 2020. 

Coming into today, eight analysts sport a "strong buy," while the remaining 18 stay at a "hold" or worse. Meanwhile, the 12-month consensus target price of $184.29 is a 11.3% discount to current levels. 

Though short interest has fallen 10.8% in the last reporting period, the 16.01 million shares sold short still account for 26.5% of the stock's available float. At W's average pace of daily trading, it would take nearly five days to cover. 

Also, W's Schaeffer's Volatility Scorecard (SVS) sits at a highest possible 100. This means the stock has tended to exceed option traders' volatility expectations during the past year -- a boon for option buyers.

 

 

 

These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!

 

Common mistakes options traders make
 


 


 
Special Offers from Schaeffer's Trading Partners