A price-target hike to $111 from $90 at Sterne Agee sent Skechers USA Inc (NYSE:SKX) soaring to an all-time high of $100.48 earlier. At last check, the shares were 3.3% higher at $99.89, and options volume is accelerated.
Among the most popular strikes is the May 105 call, with data giving the impression of buy-to-open activity. These traders expect the stock to continue moving higher into record territory, toppling $105 by the close next Friday, May 15, when front-month options expire.
Looking back, SKX's options traders have been placing bearish bets at an accelerated clip. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.46 ranks higher than 95% of all readings from the past year -- though some of these long calls may have been initiated by shareholders as a downside hedge.
Options traders aren't the only ones bearish on the stock. Over 15% of the equity's float is sold short, and would take more than eight sessions to buy back, at its average daily volumes.
Analysts, however, stand behind Skechers USA Inc (NYSE:SKX), with all five covering brokerage firms issuing "buy" or better ratings. The shares have earned this bullish attention -- at least in part -- by adding 143% in the past 12 months.