Bulls Stampede Skechers U.S.A., Inc. (SKX) Amid All-Time High

Skechers USA Inc (SKX) shorts are likely kicking themselves during today's rally

Apr 23, 2015 at 11:12 AM
facebook X logo linkedin


Skechers USA Inc (NYSE:SKX) is booming today, jumping to an all-time high of $86.49 earlier, after the company's first-quarter numbers smashed analysts' expectations. At last check, the shares were 13.3% higher at $85.86, and bullish options traders are trying to get in on the action. Calls are crossing at 13 times the normal intraday volume and three times put volume. It appears traders are buying to open the July 80 call, expecting SKX to extend its upward momentum further beyond $80 by July expiration.

Looking at SKX's options data leading up to today shows short-term options traders have been unusually interested in calls. The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 0.26, meaning call open interest outstrips put open interest nearly by a factor of four, at least among options expiring in the next three months. Plus, this ratio is lower than 98% of readings taken in the past 12 months, meaning near-term speculators are way more call-skewed than normal.

This focus on calls may be associated with the equity's elevated short interest level. By the numbers, 14.3% of SKX's float is sold short, and would take over eight sessions to buy back, at the stock's average daily volume. Some of these bearish traders may have used long call options to hedge their bets in case of an upward move in the underlying, as we're seeing today.

150423skx

It's somewhat odd to see short sellers so interested in Skechers USA Inc (NYSE:SKX), given its long-term success on the charts. Even before today's bull gap, the shares had nearly doubled during the past 52 weeks. Meanwhile, a number of analysts are betting on SKX to extend this momentum, with the stock receiving post-earnings price-target hikes at Susquehanna (to $89), Citigroup (to $93), Sterne Agee (to $90), and Monness Crespi Hardt (to $90).

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI