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Ulta Beauty Stock Soars on Berkshire Hathaway's Stake

Options are flying off the shelves today

Digital Content Manager
Aug 15, 2024 at 10:19 AM
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Ulta Beauty Inc (NASDAQ:ULTA) is up 14.5% to trade at $366.88 at last check, amid news that Warren Buffett’s Berkshire Hathaway (BRK) took a $266 million stake in the cosmetics retailer

Shares are bouncing off an Aug. 13, three-year low of $318.72, as they pace for their first close above the 20-day moving average in nearly a month. The equity still carries a 24.8% year-to-date deficit, though.

Options are flying off the shelves, with 9,733 calls and 5,447 puts traded so far, which is 14 times the intraday average volume. The most popular contract is the August 380 call, where positions are being opened.

Short-term options traders leaned bullish prior to today's headlines. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.69, which ranks higher than only 7% of readings from the last 12 months.

Its also worth noting that the stock's Schaeffer's Volatility Scorecard (SVS) ranks at 85 out of 100. This means the security outperformed volatility expectations in the past year.

 
 
 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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