RedBox Stock Extends Rally, Options Traders Respond

The stock is trending on Stocktwits

Deputy Editor
Jun 13, 2022 at 10:29 AM
facebook twitter linkedin


RedBox Entertainment Inc (NASDAQ:RDBX) is bucking the broad-market selloff today, up 24.4% at $16.42 at last glance, as the short squeeze candidate extends its recent rally and trends on Stocktwits. Up 144.8% in the last week, RDBX is currently trading at its highest level since November. 

Short interest represents 38.6% of the stock's available float, after jumping 62.2% in the last two reporting periods. However, RDBX's 14-Day Relative Strength Index (RSI) of 82.1 stands in "oversold" territory -- a factor that is in favor of the security's looming correction. 

Options traders don't appear to be worried about the stock running out of steam just yet, with 67,000 calls exchanged so far, in comparison to 15,000 puts. This has overall options volume running at seven times the intraday average. The June 28 call is the most popular, followed by the 18 call in the same monthly series, with new positions being opened at the former.

Meanwhile, analysts lean bearish. Of the four in coverage, three carry a "hold" or worse rating. In addition, the 12-month consensus price target of $2.17 is an 87.3% discount to current levels. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners