WKHS Sees Options Surge as it Struggles to Maintain Reddit Gains

The security has been rejected by the $18 level various times since its Reddit-fueled rise

Assistant Editor
Jul 8, 2021 at 1:48 PM
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The shares of tech concern Workhorse Group Inc (NASDAQ:WKHS) have been faltering on the charts recently. The stock has been rejected by the $18 level various times since its early-June "meme stock" pop. Despite earlier dipping below the $12 level for the first time since that bull gap, WKHS has rebounded today -- now up 5.2% to trade at $13.17 at last check. It's also worth noting that WKHS has landed on the short-sell restricted (SSR) list today. 

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What's more, Workhorse stock just appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names highlighted in yellow. Digging deeper, 504,821 weekly calls and 139,447 weekly puts have been exchanged during this time. The most popular contract during that two-week period was the weekly 7/2 18-strike call. 

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Analysts are mostly hesitant on WKHS, with four of the five in coverage carrying a "hold" rating, with one a "strong buy." Meanwhile, though short interest is down 14.3% during the two most recent reporting periods, it still accounts for an impressive 36% of the stock's available float. 

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 91 out of 100. This means WKHS has exceeded option traders' volatility expectations during the past year.

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