Yext Options Volume Pops After FAANG Partnership

Yext will provide answers about local businesses for Amazon's Alexa

Jul 25, 2018 at 2:30 PM
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The shares of online business listing service Yext Inc (NYSE:YEXT) are skyrocketing to new heights today, after the company announced a partnership with FAANG member Amazon (AMZN). Specifically, the Yext Knowledge Engine will be integrated into Amazon's Alexa, allowing consumers to get info on the location, hours of operation, and more of local businesses. "Today is a quantum leap forward in Yext's mission," said the firm's founder and CEO, Howard Lerman. Against this backdrop, YEXT options are flying off the shelves today.

At last check, YEXT shares were up 18.8% to trade at $22.50, after earlier notching an all-time high of $22.86. The stock is easily on pace for its best session ever, and a close above $22 would be double its April 2017 initial public offering (IPO) price of $11 per share, and more than double its early February record low of $10.60.

YEXT stock chart july 25

So far today, more than 2,100 calls and 300 YEXT puts have changed hands -- 10 times and 47 times the average intraday volume, respectively. In fact, volume is pacing for an annual high across the board.

Most active is the now in-the-money August 20 call, with more than 1,000 contracts traded. Buyers of these calls are expecting Yext stock to extend its journey north of $20 over the next month. Meanwhile, it seems even more ambitious traders may be buying to open the August 22.50 call -- the second-most active option on the day.

Short sellers may be running for cover, too. Short interest surged nearly 44% in the past two reporting periods, and now accounts for more than 10% of YEXT's total available float. At the stock's average pace of trading, it would take more than eight sessions to buy back these bearish bets.

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