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DoorDash Stock Set to Pop After Upgrade

For those looking to get in on the action, options are affordably priced

Deputy Editor
Sep 19, 2024 at 9:16 AM
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Shares of online delivery service DoorDash Inc (NYSE:DASH) are 4.4% higher before the bell, following a bull note from BTIG. The Wall Street brokerage upgraded DASH from "neutral" to "buy" with a $155 price target after citing several key factors, including strong third-quarter growth despite consumer weakness.

DoorDash stock is on track to open around $138.30, which is right below its closing record of $141.10. The equity got a boost after the Federal Reserve cut interest rates yesterday for the first time in four years, though the bounce lost steam at the $135 region that also acted as resistance in late April. DASH is up 34.1% in 2024.

Coming into today, most analysts were bullish, though there's still room for pessimism to unwind. Of the 36 covering brokerage, 14 still recommend a tepid "hold," meaning more upgrades could be on the way.

A change in tune from short-term options traders could also help DoorDash stock. This is per the equity's Schaeffer's put/call open interest ratio of 0.93 that ranks higher than 89% of readings from the past year, which shows these traders have favored puts of late.

It looks like a great time to speculate with options. DASH's Schaeffer's Volatility Index (SVI) of 32% sits in the low 9th percentile of its annual range, meaning it sports attractively priced premiums. 

 

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