Options Traders Pile on as Affirm Stock Bucks Bear Note

AFRM is taking broader market cues today

Deputy Editor
Dec 13, 2022 at 10:04 AM
facebook X logo linkedin

The shares of buy-now-pay-later (BNPL) concern Affirm Holdings Inc (NASDAQ:AFRM) are surging alongside the broader market, brushing off a bear note from Bank of America Securities, who downgraded AFRM to "neutral" from "buy," citing "sticky" negative sentiment. The analyst fears that Affirm's credit risk and discretionary spending cutbacks could be around for several more quarters.

Despite this, Affirm stock was last seen up 9.6% to trade at $13.45, as the upbeat inflation reading jolts U.S. equities awake. The shares' are now facing off with their 20-day moving average, a trendline that's weighed since early November. In the last 12 months, the security has shed 89.3%.

Options traders could be calling a bottom for AFRM, with 12,000 calls -- double the intraday average volume -- already crossing the tape today. Most popular by far is the weekly 12/30 13.50-strike put, followed by the December 12.50 call.

This is a shift from the longer-term sentiment in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AFRM's 50-day put/call volume ratio of 2.81 sits higher than 94% of readings from the past year, which indicates a healthy appetite for puts over the last 10 weeks.

Options are certainly an intriguing route, per the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 75 out of 100, this means Affirm stock has exceeded option traders' volatility expectations during the past year.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI