Insurance Stock Eyes Best Day Ever After Earnings

The company posted a surprise profit for the third quarter

Laura McCandless

Deputy Editor

Oct 31, 2024 at 10:53 AM

ROOT

Shares of Root Inc (NASDAQ:ROOT) are skyrocketing to nearly three-year highs, after the auto insurance name posted surprise third-quarter profits of $1.35 per share. Analysts expected a loss of 87 cents per share to match last year's results, while revenue beat estimates as well. Per CEO Alex Timm, the company "performed well beyond outside expectations."

ROOT was last seen up 156% at $103.67, earlier trading as high as $105.50, and on track for its largest single-day percentage gain ever. The stock soared above the $86 level, which capped its rallies in April and July. Since the start of the year, the equity is up 880%.

Unsurprisingly, Root stock has already seen 14 times its average daily options volume today. The November 65 put is the most popular, with new positions being sold to open there.

A short squeeze could account for a portion of today's tailwinds, as short interest represents 17.1% of the stock's available float. It would take shorts over six days to cover, at ROOT's average pace of trading.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.