This Tech Stock Seems Ripe for a Short Squeeze

F5 Networks stock is overdue for upgrades

Aug 21, 2018 at 10:40 AM
facebook X logo linkedin


The technical setup for software stock F5 Networks, Inc. (NASDAQ:FFIV) appears quite strong. The shares are up more than 53% year-over-year, and recently took out the $174 level -- roughly two times their 2016 bottom. What's more, a post-earnings pullback in late July was quickly erased, and a recent consolidation near the 52-week high could mark an opportune time for bulls to get in for the next leg higher.

180817ffuv

 

Meanwhile, sentiment is overly bearish on the security. There are 17 brokerage firms in coverage, but 12 of them have "hold" or "strong sell" ratings, and the average 12-month price target sits below current levels. Traders should watch for upgrades and/or price-target increases to come through and help lift FFIV.

There's potential for a short squeeze, too. Short interest rose another 14.4% in the last two reporting periods, and lofty 7.2% of the total float is now held by short sellers.

Also, the stock's Schaeffer's Volatility Index (SVI) of 22% sits in just the 26th annual percentile, revealing low volatility expectations being priced into near-term contracts.

Subscribers to Schaeffer's Weekend Trader Alert options recommendation service received this FFIV commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader Alert is one of our most popular options trading services.

 

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