The company reported better-than-expected first-quarter earnings and revenue
Home furnishing name RH (NYSE:RH) is soaring on the charts, up 14.1% to trade at $697.51 at last check. Today's positive price action comes after the retailer reported better-than-expected first-quarter earnings and revenue, and raised its full-year forecast. To follow, no fewer than 10 analysts lifted their price targets, with the highest from Barclays to $810.
Today's pop has RH back above an abundance of short-term moving averages, including its 30-day trendline, which rejected a mid-May rally attempt. Rebounding back toward its April 29 record high of $733.05, RH is up an impressive 185% year-over-year.
Options traders have been quick to get in on the action post-earnings. So far, 11,000 calls and 11,000 puts have crossed the tape -- 17 times the intraday average. The most active option by far is the weekly 6/11 700-strike call, trailed by the July 310 put, with positions being opened at both.
It's also worth noting that short interest makes up 15% of the stock's available float. In other words, it would take five days to buy back these bearish bets, at RH's average pace of trading, leaving room for a short squeeze to put even more wind at the equity's back.