Box Stock's Recent Breakout Could Have Legs

A shift in sentiment could also provide tailwinds

Aug 2, 2022 at 9:37 AM
facebook X logo linkedin

Cloud concern Box Inc (NYSE:BOX) recently broke above its 80- and 100-day moving averages, before retesting and bouncing off this level mid-week. In addition, the security just closed above a level that's double its initial public offering price (IPO) -- an area that stalled prices  in June and July -- and found support at its 2018 and 2021 monthly closing highs, as well as its year-to-date breakeven level. With this impressive technical setup, now looks like an ideal time to speculate on BOX with calls.
box aug 2
A shift in the options pits could provide additional tailwinds. Specifically, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Box stock sports a 50-day put/call volume ratio of 1, which sits higher than all other readings from the past 12 months. This implies that puts have never been more popular during this time period.

Meanwhile, the brokerage bunch leans optimistic, but there's still room for upgrades for the outperforming equity. Currently, four analysts still rate BOX a tepid "hold" against six "buy" or better recommendations.

The good news is the security sports relatively cheap options at the moment. This is per Box stock's low Schaeffer's Volatility Index (SVI) of 35%, which ranks higher than just 14% of readings from the past 12 months. Our recommended call has a leverage ratio of 4.81 and will double on a 21.9% pop in the underlying shares.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this BOX 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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI