Call traders are starting to move in on the equity
Software specialist Rubrik Inc (NYSE:RBRK) is retreating from its pre-market gains to trade 0.9% lower at $70.93 this morning, despite landing an upgrade to "outperform" from "neutral" at Mizuho. Keeping its price target at $97, the firm said the stock is undervalued and hosts many competitive strengths in comparison to its peers. Oppenheimer also threw its hat into the ring, initiating coverage with a "perform" recommendation.
Despite its recent struggle on the charts, RBRK remains 60% higher year-over-year. Added support has moved in at the $70 floor, though a confluent of major moving averages loom overhead.
Albeit amid lighter volume, calls have been more popular than usual over the past two weeks. This is per Rubrik stock's 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 87% of readings from the past year.
Short interest has been building slowly, up 2.4% during the most recent reporting period, and now accounts for 8.6% of the stock's available float. At RBRK's average pace of daily trading, it would take short sellers over three days to buy back their bearish bets.