Options Bulls Charging Toward Red-Hot Software Stock

A short squeeze could provide more tailwinds to TEAM

Deputy Editor
Oct 16, 2020 at 12:19 PM
facebook X logo linkedin

Software development name Atlassian Corporation PLC (NASDAQ:TEAM) is pivoting higher today, up 1.8% at $194.40 at last check, a chip-shot from its all-time high close of $199.87. Guided higher by its ascending 10-day moving average, TEAM boasts a year-to-date lead of 60.8%, and options traders are taking notice.

TEAM Chart October 16

Today's positive price action has the bulls charging the security in droves. So far, 7,262 calls have crossed the tape -- four times the average intraday volume, and nearly five times the number of puts traded. Most popular is the October 200 call, with positions being opened, followed closely by the weekly 10/30 190-strike call. This suggests these traders are speculating on a lot more upside for TEAM by the time these contracts expire. 

This penchant for bullish bets is nothing new. In fact, in the last 10 days, 4,087 calls exchanged hands, compared to just 998 puts. This data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands in the 96th percentile of its annual range.

A short squeeze could keep the wind at TEAM's back. Short interest is up 7.9% in the past two reporting periods, and now accounts for roughly 8.37 million shares, or 7.3% of the stock's total available float.

Those wanting to get in on the security's rise may want to consider options. Options traders are pricing in relatively low volatility expectations at the moment, per the stock's Schaeffer's Volatility Index (SVI) of 54%, which sits higher than just 31% of all other annual readings.


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