Analysts, Options Traders Target Fastly Stock After Earnings

Options volume is running at six times the intraday average

Deputy Editor
Nov 4, 2021 at 1:08 PM
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Analysts and options traders alike are piling on Fastly Inc (NYSE:FSLY) today, following the release of the cloud company's third-quarter earnings report last night. Fastly reported adjusted second-quarter losses of 11 cents per share -- 8 cents better than Wall Street anticipated -- to pair with a revenue beat. 

In response, the equity received upgrades from at least four firms, including a price-target hike to $53 from D. A. Davidson. And there's plenty of room for additional upgrades ahead. Heading into today, all seven brokerages in coverage maintaining tepid "hold" or worse ratings on the equity. Meanwhile, the 12-month consensus price target of $47.57 is a 13.9% discount to current levels.

Options traders are loading up on calls. At last check, 47,000 calls and 28,000 puts have crossed the tape so far, volume that's six times the intraday average. Most popular is the weekly 60-strike call, followed by the November 63 call in the standard series, with new positions being opened at both. 

Options look like a solid play at the moment, considering the security's Schaeffer's Volatility Scorecard (SVS) rating sits at 83 out of 100. This suggests the stock has exceeded these volatility expectations during the past year -- a boon for premium buyers.

Last seen up 2.5% to trade at $54.58, Fastly stock has turned in a dismal performance so far this year, and with less than two months left in 2021 seems unlikely to overcome its 37.4% year-to-date deficit. The shares' 200-day moving average is keeping a lid on today's gains, while their 100-day moving average could emerge as a potential floor going forward.

FSLY Chart Nov 4


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