Travel Stock Surges After Earnings, Pfizer News

Options volume is running at six times its typical intraday volume

Deputy Editor
Nov 5, 2021 at 10:58 AM
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The shares of Expedia Group Inc (NASDAQ:EXPE) are surging today, up 14.7% to trade at $180.73, after the company's upbeat third-quarter results, with earnings and revenue both beating expectations. Plus, news that Pfizer's (PFE) Covid-19 antibody pill has been shown to cut the risk of hospitalization by 89% is giving travel stocks a boost today. 

In response, no fewer than eight analysts lifted their price targets on EXPE, with several analysts noting their confidence in the stock's recovery from the impact of Covid-19. However, Evercore ISI also threw in a price-target cut of $2 to $176. There is still ample room for further bull notes, too, as 13 of the 22 analysts in coverage carry a tepid "hold" rating on PFE. 

Today's pop has EXPE firmly trading above all short- and long-term moving averages, as well as pressure at the $175 level, which has acted as a ceiling since early June. Climbing back toward its March 18 record high of $187.93, Expedia stock is up 35.1% year-to-date. 

Short interest has been on the rise, and now represents 6.4% of the stock's available float. In other words, it would take over four days to buy back these bearish bets, at EXPE's average pace of trading -- plenty of pent-up buying power to be unwound. 

Options traders are targeting EXPE with great fervor this morning, with options volume running at six times what's typically seen at this point. So far, 13,000 calls and 4,678 puts have crossed the tape, with the November 180 call seeing the most activity. 

 

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