Fastly Stock Zooms Towards Record Highs

Options bulls are taking notice

Deputy Editor
Jun 25, 2020 at 2:33 PM
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Content delivery network (CDN) name Fastly Inc (NYSE:FSLY) is trading at never-before-seen levels today, up 7.8% at $82.03, pacing for its highest close on record and its tenth consecutive daily win. The IT services specialist announced earlier that its partnership with NexTech AR just achieved a breakthrough enterprise in video security with its implementation of JWT, which could be putting even more wind at the rallying equity's back. The stock is now up an eye-popping 298.2% for the year, and going on its eighth straight weekly win -- its longest streak since going public last year. 

FSLY June 25

Fastly is attracting plenty of traders to the options pits. So far today, 42,000 calls and 16,000 puts have exchanged hands-- four times what's typically seen at this point. Most popular is the weekly 6/26 85-strike call, where new positions are being opened. This suggests that these traders are speculating on more upside for Fastly by the time the contract expires tomorrow. This penchant for bullish bets is typical, considering that in the last 10 days, 29,061 calls exchanged compared to 11,656 puts. 

Analysts are echoing this sentiment, with seven out of the nine in coverage sporting a "strong buy" rating while the remaining two stand at a tentative "hold" rating. Meanwhile, the 12-month consensus price target of $38.88 is a whopping 52.6% discount to current levels. 

Despite the recent rally, short is up 54.1% during the last two reporting periods. These 4.73 million shares sold short represent 36.6% of the stock's available float, or one day at FSLY's average pace of trading. 

It's also worth noting that Fastly is firmly in overbought territory. The equity's 14-day relative strength index (RSI) of 87 indicates that a short-term breather may be coming up soon for FSLY.







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