Upbeat Analyst Note Pushes Casino Stock to Record Highs

PENN options volume is running at double the daily average

Deputy Editor
Sep 17, 2020 at 3:21 PM
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The shares of Penn National Gaming Inc (NASDAQ:PENN) are extending yesterday's all-time highs, up 7.1% at $72.62 at last check, after Stifel raised its price target to $85 from $47. The firm noted that various states are expected to pass gaming legislation, which should keep up the sports betting and iGaming momentum. 

Up 185.1% year-to-date, today's fresh high of $74.73 is a culmination of PENN's recent rally on the charts. The equity recently broke out past its early-September pressure at the $58, and is currently on track for its eighth weekly win in the last nine weeks. 

PENN Sep 17

Of the 10 analysts in coverage, six sport a "strong buy" on Penn stock, with three a "hold" and one "strong sell." Today's price-target hike could soon be accompanied if the stock continues its climb on the charts, as the security's 12-month consensus price target of $58.48 is a 20.2% discount to current levels.

Looking toward options, data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows traders have preferred PENN calls, with the 10-day call/put volume ratio coming in at 3.01. So far today in the options pits, 77,000 calls and 23,000 puts have crossed the tape -- roughly double the daily average. Leading the way is the September 75 call, expiring at the end of this week, where new positions are being opened. 

The equity's Schaeffer's Volatility Scorecard (SVS) stands at 94 out of 100. This means the security has tended to exceed volatility expectations during the past year -- a boon for option buyers. Its Schaeffer's Volatility Index (SVI) of 88% sits in just the 12th of all other annual readings, meaning the stock sports attractively priced premiums at the moment.


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