SunPower Stock's Short Squeeze Rally Dims

The stock is firmly lower after a downgrade from Wolfe Research

Deputy Editor
May 15, 2024 at 10:56 AM
facebook X logo linkedin

SunPower Corporation (NASDAQ:SPWR) stock's short squeeze appears to finally be ending, amid the reignited meme stock craze. The shares are down 27.1% at $3.20 at last glance, after rising roughly 80% over the last two sessions. Today's drop comes after Wolfe Research downgraded the stock to "underperform" from "peer perform," with a price target of $2. 

The $3 level, a familiar line of pressure and support since the start of the year, appears to be capturing today's pullback. Since the start of 2024, the SunPower stock shed 34.9%. 

Still, 95% of Sunpower stock's total available float is sold short, or seven days' worth of pent-up buying power. Today's drop could've already been in the cards, however, as the security's 14-day relative strength index (RSI) of 92.2 sits firmly in "overbought" territory. 

So far today, 30,000 calls and 14,000 puts have been exchanged, which is seven times the overall average daily options volume. The May 3.50 call is the most popular contract, where new positions are being opened. 


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI