Options Bulls Blast Stitch Fix Stock on Raised Stake

Year-over-year, SFIX remains down over 90%

Digital Content Manager
Jul 13, 2022 at 10:04 AM
facebook twitter linkedin

The shares of Stitch Fix Inc (NASDAQ:SFIX) are surging this morning, last seen up 12.9% at $5.81. These tailwinds came after venture capitalist and Stitch Fix director Bill Gurley raised his stake in the online styling concern through the purchase of one million shares at roughly $5.43 per share.

The security is on track to snap a three-day losing streak, should these gains hold. It has been a tough year for Stitch Fix stock so far, with the 40-day moving average keeping a tight lid on the equity most of the time, and driving the shares to a July 5, record low of $4.66. Year-over-year, SIFX remains down 90.7%.

The brokerage bunch is on the fence, with 12 of the 14 analysts in coverage carrying a tepid "hold" rating. Meanwhile, shorts sellers are in control, with the 12.84 million share sold short making up 16.2% of the stock's available float, which is roughly four days' worth of pent-up buying power.  

Options traders have been overwhelmingly pessimistic. This is per the security's 50-day put/call volume ratio of 4.50 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 98% of readings from the past year. This suggests long puts have have been getting picked up at a much faster-than-usual clip.

Today's options pits paint a different picture, however. So far, 3,102 calls have crossed the tape, or nine times the intraday average, as opposed to 1,706 puts. The most popular contract is the July 6 call, followed by the August 7.50 call, with positions currently being opened at both.


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!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners