Yeti Stock Could Keep Heating Up This Summer

There is plenty of pessimism to be unwound

Jul 14, 2021 at 12:36 PM
facebook X logo linkedin


The shares of Yeti Holdings Inc (NYSE:YETI) are outperforming the broader market, up more than 33% year-to-date. The equity has been trending higher over the past 12 months as well -- given its over 118% year-over-year lead -- and now sits above its pre-earnings close around the $90 mark, which is five times its initial public offering (IPO) price. With these factors in mind, we are recommending a new long position on YETI stock.

YETI 0714

The security looks ripe for a short squeeze, too, which could push shares higher still. The 5.98 million shares sold short make up a significant 7.3% of the stock’s available float. It would take nearly a week to buy back these bearish bets, at YETI’s average daily pace of trading.
 
Additional tailwinds could come from a shift in the options pits, which lean bearish. This is per YETI’s 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 95th percentile of its annual range. This suggests long puts have been more popular than usual over the past 10 weeks.
 
Now may be the perfect time to buy YETI premiums, which are affordably priced at the moment. The equity's Schaeffer's Volatility Index (SVI) of 41% sits in the 14th percentile of readings from the past year, indicating options players are currently pricing in low volatility expectations. Our recommended call has a leverage ratio of 4.6, and will double in value on a rise of 22.8% in the underlying security.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this YETI commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

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