Lidar Demo Update Drives MVIS Back Toward Record Highs

Today's outsized move is driving option traders to the stock, too

Digital Content Manager

Apr 28, 2021 at 1:23 PM

The shares of Microvision, Inc. (NASDAQ:MVIS) are skyrocketing ahead of the laser beam scanning (LBS) company's first-quarter earnings report, which is due out after the close tomorrow, April 29. Microvision's announcement that it completed its long-range lidar demo is certainly helping the shares along too, and at last check, MVIS was up 17.5% to trade at $23.68.

MVIS has seen some incredible price action in 2021 since bursting out of penny stock territory late last year. And though the security's run has been nothing short of volatile, it looks like the $10 level and the 100-day moving averages have both emerged as a floor on the charts. This volatility has been quite evident this week, with the stock yesterday shooting to a fresh all-time high of $28 just after bottoming out of a trend of lower highs. The stock has made up most of these losses during today's trading, and now sports a roughly 9,490% year-over-year lead.

MVIS April 28

Despite these outrageous 12-month returns, short sellers have been coming out in droves, up 30.3% in the last two reporting periods. The 31.42 million shares sold short now make up over a quarter of the security's available float, which could create a short squeeze, should some of these bears begin to change their minds and jump ship. Traders should keep in mind, however, that MVIS has landed on the Short Sale Restricted (SSR) list today.

Option traders are tightly circling the volatile stock today. So far, 111,000 calls and 38,000 puts have exchanged hands -- triple the intraday average amount. The May 25 call is seeing the most activity, followed closely by the 35 call in the same series.

True to form, MVIS tends to make outsized moves after earnings reports. In fact, during the past two years, the security averaged a next-day swing of 14.5%, regardless of direction. This encompasses a 17.8% pop after its last earnings report in early March, and a 25.3% plummet following its August 2020 quarterly release. This time around, the options pits are pricing in an even bigger move of 40.9%.

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