Analyst Upgrades DoorDash Stock on Covid-19 Tailwinds

Short interest has plummeted over the last two reporting periods

Deputy Editor
Dec 1, 2021 at 10:40 AM
facebook twitter linkedin

DoorDash Inc (NYSE:DASH) could benefit from the omicron variant, according to Gordon Haskett. The firm upgraded the security to "buy" from "hold," saying the food delivery concern could see a rebound in orders if Covid-19 infections rise due to the potentially vaccine-resistant strain. DASH is still struggling for direction this morning, though, last seen up 0.3% to trade at $179.24.

The last time we check in on Doordash stock, it was receiving some bullish attention after a major acquisition. Not much has changed on the analyst front since then, with eight of the 17 firms in question calling DASH a "buy" or better, while the remaining nine say "hold." Shorts, meanwhile, are hitting the exits at an alarming rate, with short interest down 27.8% in the last two reporting periods.

Options traders are incredibly bullish towards the equity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DoorDash stock sports a 10-day call/put volume ratio of 2.72, which is higher than 95% of readings from the past year. In other words, calls are getting picked up at a quicker clip than what is typically observed.

Now could be a good time to weigh in on the stock's next move with options, as DASH sports attractively priced premiums at the moment. This is per its Schaeffer's Volatility Index (SVI) of 63%, which sits in the 21st percentile of its annual range.

Today's price action should help the security make up at least some lost ground, given it shed just over 9% in a month. However, the 120-day moving average, which caught a pullback in early November, moved in as resistance a little over a week ago. Longer term, DASH is up 26% year-to-date.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners