ETSY on the Rise After Billion-Dollar Depop Deal

ETSY has doubled since last year

Deputy Editor
Jun 2, 2021 at 11:48 AM
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Etsy Inc (NASDAQ:ETSY) is up 1.5% at $163.46 this afternoon, following news that the e-tail giant plans on acquiring clothing resale firm Depop, in a deal worth $1.63 billion. The ownership of Depop, which caters to Gen-Z fashion tastes, is a push to help Etsy attract younger customers. 

ETSY has doubled in the past year, though 2021 has taken the equity down a peg, and pressure at the 20-day moving average has kept a lid on shares since late April. The stock is off 6.2% year-to-date, though its testing its footing atop the aforementioned 20-day trendline. A short-term pop could already be in the cards for ETSY. The security's Relative Strength Index (RSI) of 38 sits right on the cusp of being "oversold."

That being said, buying options on ETSY may be the way to go. Its Schaeffer's Volatility Index (SVI) of 44% sits in the 5th percentile of its annual range, and its Schaeffer's Volatility Scorecard (SVS) ranks at 98 out of a possible 100. This implies options players have been pricing in relatively low volatility expectations for Etsy stock at the moment, while the equity has tended to exceed these expectations -- a good thing for buyers. 

 

 

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