Not even 14 price-target hikes could boost MDB today
Shares of MongoDB Inc (NASDAQ:MDB) were last seen down 10.3% at $314.10, pulling back from their premarket surge despite the software company's better-than-expected third-quarter results and full-year revenue forecast. The stock is also brushing off no fewer than 14 price-target hikes, the highest coming from Wells Fargo to $425 from $350. One possible explanation for the pivot lower is Michael Gordon, the company's long-time CFO and COO, announced his retirement at the end of January.
Heading into earnings, the stock's 14-day relative strength index (RSI) reading of 75.7 was firmly in "overbought" territory, meaning a short-term dip was likely in the cards. Despite hitting a six-month high yesterday, MDB is now down 23% since the start of the year. The shares are now testing at their 30-day moving average, a trendline that has stepped up as support in the last month.
So far in the options pits, 25,000 calls and 25,000 puts have been exchanged, which is 2.6 times MDB's average daily options volume already. The weekly 12/13 300-strike put is the most popular, with new positions opening there.
Puts have been growing in popularity even before today. MDB's 10-day put/call volume ratio of 0.96 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 86% of annual readings. So while calls still outnumber of puts on an absolute basis, the high ratio indicates that such a put skew is rare in the last year.