Pinterest Stock Looks Promising

PINS just broke north of a key trendline on the charts

Jun 17, 2020 at 1:37 PM
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Tech stock Pinterest Inc (NYSE:PINS) looks promising right now. The equity just broke out above a downtrend line connecting higher highs. A subsequent pullback also found support near this area, keeping PINS at a 12% lead for the year.

WKALT PINS Chart June 12

Analysts still aren’t convinced, which could spark some tailwind-inducing upgrades going forward. Of the 17 in coverage, just seven call the stock a “buy” or better, while the remaining 10 say “hold.”

And while shorts have started to jump ship, down 25.9% in the last two reporting periods, the 16.61 million shares sold short still represent a whopping 19.3% of PINS’ available float, which could result in a short squeeze, should more bears begin to hit the exits.

It is also worth noting that Pinterest stock sports a Schaeffer’s Volatility Scorecard (SVS) of 78. This means PINS has tended to exceed option traders’ volatility expectations during the past year. What’s more, our recommended call option has a leverage ratio of 4.04 and will double in a 24.5% pop in the underlying stock.

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