Chemical Stock Hits 2-Year Highs as Bull Notes Continue

Options traders are more bullish than usual as well

Deputy Editor
May 28, 2024 at 11:00 AM
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Bull notes have pushed Dupont De Nemours Inc (NYSE:DD) stock to two-year highs today. The stock was last seen up 0.5% at $81.52 and earlier hit a peak of $82.30, after Citigroup upgraded the chemical name to "buy" from "neutral," with a price-target hike to $95 from $85, while Barclays lifted its price objective to $85 from $81. This is just the latest in a flood of analyst praise, as Deutsche Bank raised its price target and Wells Fargo upgraded the stock last trading session. 

This attention comes ahead of the stock's ex-dividend date on Friday, May 31. The stock has kept up momentum since its May 1 post-earnings bull gap, continuing past former pressure at the $78 level, which kept gains in check since early 2023. Year over year, the equity is up 20.6%. 

Options traders have been far more optimistic than usual as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DD's 10-day call/put volume ratio of 9.54 ranks higher than 95% of readings from the past year. 

These options are reasonably priced at the moment, too. The security's Schaeffer's Volatility Index (SVI) of 16% ranks in the low 13th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. 

 

 

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