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Options Traders Blast Soaring WKHS Amid Record Highs

Options volume is running at six times what's typically seen at this point

Deputy Editor
Jan 26, 2021 at 1:41 PM
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Workhorse Group Inc (NASDAQ:WKHS) is soaring to new record highs today, up 30.6% to trade at $32.36 at last check. After breaking out of pressure at penny stock territory in June, WKHS has climbed rapidly with help from the 120-day moving average. Today shooting above former pressure at the $30 region, the stock is up around 960% year-over-year. 

Today's jump has options traders taking notice, with options volume running at six times what's typically seen at this point. More specifically, 289,000 calls and 61,000 puts have crossed the tape so far. The most active of these options is the weekly 1/19 30-strike call, followed by the 35-strike call in the same series, with new positions being opened at both. 

On the analyst front, there is still room for increased optimism. Of the five analysts in coverage, two carry a tepid "hold" rating on the stock. Furthermore, Workhorse stock's 12-month consensus price target of $25.33 is a 20.7% discount to current levels. 

Lastly, an unwinding of short interest could bring tailwinds for WKHS. During the last two reporting periods, short interest has risen 34.6% to represent a whopping 53.1% of the stock's available float -- plenty of pent-up buying power. 

 

 

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