Options Traders Join FuboTV Stock's Trading Frenzy

Wedbush downgraded FUBO to "neutral" from "outperform"

Digital Content Manager
Aug 17, 2022 at 12:19 PM
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As traders target meme stocks once more, Fubotv Inc (NYSE:FUBO) has gotten caught in the mix. The equity surged as high as $8.13 on Tuesday, as the company's investor day got underway, and in August alone, it's added 123.9%. The security is taking a breather during today's session, however, last seen down 12.3% at $5.57, following a downgrade from "neutral" to "outperform" at Wedbush. The firm raised FUBO's price target by $1 to $6 as well.

Roth Capital and Evercore ISI also chimed in. The former hiked its price objective to $6, while the latter lifted its lifted its target by $3 to $8. The 12-month consensus price target now sits at $9 -- a hefty 61.9% premium to current levels. Sentiment remains lukewarm, however, and coming into today five of the eight analysts in coverage called FUBO a "hold" or worse. 

The options pits are going wild in response to all this analyst action. So far, 101,000 calls and 44,000 puts have been exchanged, which is four times the intraday average. The most popular contract is the August 7 call, followed by the August 6 call, with new positions being opened at both.

For short-term options traders, puts have been the norm. This is per FUBO's Schaeffer's put/call open interest ratio (SOIR) of 0.90, which sits in the 92nd percentile of its annual range, indicating a bias for these bearish bets. 

Meanwhile, short sellers have been piling on, with short interest rising 13.8% in the last two reporting periods. Short interest makes up 33.3% of the security's available float, or nearly one week's worth of pent-up buying power. However, the security has landed on the Short Sale Restricted (SSR) list today. 

 

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