NTNX Nears Pre-Pandemic Levels After Upgrade

Nutanix stock is on track for its fifth-straight gain

Deputy Editor
Dec 14, 2020 at 10:51 AM
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The shares of Nutanix Inc (NASDAQ:NTNX) are up 2.1% at $31.77 at last check, after Oppenheimer upgraded the stock to "outperform" from "perform." The firm noted that though the various business model and architecture transitions have created confusion for investors as well as difficulties for the company, its final transformation will bring "greater accountability and consistency." The analyst added that the new CEO, Rajiv Ramaswami, will likely create positive upcoming change as well. 

NTNX has been rising on the charts since early October, with support from the 20-day moving average. Now on track for its fifth-straight session of gains, the equity today surpassed its year-to-date breakeven point and is currently a chip shot from pre-pandemic levels above the $34 mark. 

Meanwhile, the options pits have been overwhelmingly bullish during the past two weeks. NTNX's 10-day call/put volume ratio of 25.37 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all other readings from the past year. This shows that during this time period, calls have been picked up at their fastest pace in 12 months.

That said, speculating on Nutanix stock's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 52% stands higher than just 10% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 



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