Popular Retail Chain Could be Set to Surge

Short interest is highlighting deep-seated technical strength

Jul 30, 2019 at 12:30 PM
facebook X logo linkedin


Shares of department store chain Ross Stores, Inc. (NASDAQ:ROST) have surged 21% year-over-year, while simultaneously marking a fresh record high as recently as July 19. And despite pulling back within the past few weeks, ROST has quickly rebounded near the site of its previous highs, making now the perfect time to buy calls to bet on a bigger bounce.

WKALT ROST Chart YOY

ROST looks well overdue for upgrades and/or price-target hikes, too. This is evident per the eight analysts currently following the equity that still sport a tepid “hold” rating, and the stock’s average 12-month price target of $101.70, which runs at a discount to current trading levels.

Short interest on ROST rose by 40% from April 1 through July 1, even as the stock gained more than 5% in the face of this selling pressure -- highlighting the deep-seated technical strength in the shares. These shorts have started to cover, per the mid-July short interest update, which suggests the wind is now at ROST's back.

Lastly, it's an attractive time to purchase premium on ROST. This is based on its Schaeffer’s Volatility Index (SVI) of 20%, which ranks in the 7th percentile of its annual range.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this ROST commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader 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