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Options traders are blasting the equity today
Unity Software Inc (NYSE:U) stock is rallying after Keith Gill -- also known as Roaring Kitty -- posted a clip on social media of musician Rick James, who recorded a song named “Unity.” Gill is famously behind GameStop's (GME) rise as a meme stock. At last glance, U is up 13.7% at $25.54.
Shares shed a whopping 45.1% in 2024, but have added 60.6% in the last six months. On the charts, U is bouncing off the $22 level that acted as resistance from late September to early November, as it attempts to move back closer to a Dec. 6 peak of $28.87 -- its highest level since March.
Analysts lean bearish on Unity Software stock, with 12 of 19 firms in coverage carrying a "buy" or worse rating, while the 12-month consensus target price of $22.17 is a 14.7% discount to current levels. Plus, the 23.33 million shares sold short make up 7.3% of the stock's total available float.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio sits higher than 88% of readings from the past year. This means options traders have been much more bearish than usual.
Drilling down to today's options activity, 65,000 calls and 13,000 puts have crossed the tape, which is four times the intraday average volume. The most active contract is the January 60 call.