Calls Hot as Tableau Software, Inc. (DATA) Approaches Record High

Tableau Software Inc (DATA) traders bet on last-minute upside

by Griffin Kruse

Published on Apr 16, 2015 at 3:06 PM
Updated on Apr 20, 2015 at 5:09 PM

Tableau Software Inc (NYSE:DATA) is 4.6% higher at $100.48, after William Blair and Stifel both initiated coverage on the equity. Late Wednesday, the former doled out an "outperform" rating, while the latter gave DATA a "buy" rating and a price target of $115. The optimistic predictions come as no surprise, considering the shares of DATA have gained 18.7% year-to-date. On the options front, calls have been moving at an accelerated clip, as speculators roll the dice on additional upside for DATA.

Calls are trading at eight times their average intraday rate today, and are outpacing puts by a roughly 11-to-1 margin. One of the day's most popular options is the weekly 4/24 104-strike call, where apparent buy-to-open activity has been detected. It is worth noting that this strike price is just north of DATA's all-time high of $102.37.

Despite DATA's impressive price action, puts have been a popular choice in the options pits. Specifically, DATA's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.70 stands higher than 76% of all equivalent readings from the past year. Mirroring this indicator is the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.80, which ranks in the 72nd percentile of its annual range. Said another way, short-term speculators are more put-heavy on DATA than usual. Should the stock continue its ascent on the charts, a capitulation of bears could propel the shares even higher.

Looking elsewhere, short interest on Tableau Software Inc (NYSE:DATA) decreased by 7.8% over the most recent reporting period, but still accounts for 5.6% of the equity's available float. Furthermore, it would take these traders nearly four sessions to cover their bets, at average trading volumes. Simply stated, a continued exit of short sellers from their positions could create tailwinds for the shares.

Daily Chart of DATA Since April 2014

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