Why Call Buyers Should Target Keysight Technologies Stock

Keysight stock has been an attractive target for premium buyers over the past year

Oct 15, 2019 at 11:45 AM
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Keysight Technologies Inc (NYSE:KEYS) shares look to be in a strong position on the charts. The stock recently bounced right near the $92 level, a price point that served as constant resistance for much of 2019. With this technical hurdle behind it, the stock could be on the verge of adding to its almost 54% year-to-date lead.

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One reason to believe more upside could be coming for the stock is that short interest has increased dramatically in 2019, standing near the highest point on record. Considering the shares' technical success, many of these short sellers are likely holding losing positions, and could feel pressure to cover.

Near-term options traders are also unusually put-skewed at the moment, hinting at more underlying negativity around the stock. For instance, KEYS' Schaeffer's put/call open interest ratio (SOIR) of 1.01 ranks in the 81st annual percentile.

Our Schaeffer's Volatility Scorecard (SVS) for Keysight Technologies is 87, meaning it has shown a strong tendency to be more volatile than expected. Meanwhile, our recommended call has a leverage ratio of 5.8, and would double in value on a 16.9% move higher for KEYS.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this KEYS 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.

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