Schaeffer's Top Stock Picks for '25

Options Bulls Blast Rising Under Armour Stock

Analysts are still hesitant on UAA

Deputy Editor
Jan 20, 2021 at 12:53 PM
facebook X logo linkedin


Under Armour Inc (NYSE:UAA) is up 2.2% at $18.53 at last check, and climbing back towards the $19 level, where it found resistance last week as it traded at its highest levels since February. It's also worth noting that UAA's pullback from those highs were saved by the 20-day moving average. Though still posting an 8.3% year-over-year deficit, the equity is up 32.6% in the last three months. 

UAA0120

Amid this bounce, call traders are charging toward the equity with ample enthusiasm. The 32,000 calls across the tape so far today is 13 times what is typically seen at this point volume-wise, and pacing for the top percentile of its annual range. The March 20 call is the most popular by far, with new positions being opened there. This shows plenty of traders betting on more upside for Under Armour stock in the next couple months.  

This penchant for calls is not unusual when looking at the recent activity in the options pits. UAA's 50-day call/put volume ratio of 4.99 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than all but 2% of readings from the past year. This shows long calls being picked up at a much faster-than-usual rate during the past 10 weeks. 

Despite the security's steady moves higher, there is ample room for upgrades amongst the brokerage bunch. More specifically, 15 of the 22 analysts in coverage carry a "hold" or worse rating on UAA. Plus, the 12-month consensus price target of $15.08 is an 18.6% discount to current levels. 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?