This Red-Hot Fintech Stock Has Room to Run

KeyCorp stock just cleared some technical hurdles

Oct 5, 2021 at 1:47 PM
facebook twitter linkedin

The shares of KeyCorp (NYSE:KEY) recently broke above $21, a level that has acted as resistance since mid-June. In addition, the security is sitting just above its $20 billion market cap level and announced a share repurchase program in early September. With all these technical factors in place, now looks like the perfect time to purchase KEY calls.

Despite KEY's outperformance on the charts, analysts remain on the sidelines. Of the 14 in coverage, 9 maintain a "hold" or "sell" rating. Meanwhile, the shares are cling in on KEY's consensus 12-month price target of $22.79. This indicates a round of upgrades and/or price-target hikes could be in store, which would in turn push KEY higher.
There's pessimism left to unwind in the options pits, too, per KEY's 20-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 96th percentile of its annual range, meaning puts are being picked up a relatively quicker-than-usual clip.
The good news for those looking to speculate with options, is they can be had for a bargain. KeyCorp stock's Schaeffer's Volatility Index (SVI) of 32% sits below all but 26% of annual readings, implying options traders are pricing in relatively low volatility expectations for the equity at the moment. Our recommended January call has a leverage ratio of 5.9 and will double on a 15.9% pop in the underlying shares.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this KEY 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.

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners