Expedia (EXPE) boasts a solid technical setup
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The shares of Expedia Group Inc (NASDAQ:EXPE) recently broke above the $100 level and are up more than 10% year-to-date, as they reach the bottom of a base pattern that had been capping price action. What’s more, the security conquered its year-to-date anchored volume-weighted average price (AVWAP) with support from the $20 billion market cap, as its 20- and 50-day moving averages curl higher.
Additional tailwinds could come from a round of upgrades. While 16 of the analysts in coverage already rate EXPE a "buy" or better, 15 still call it a tepid "hold" or worse.
It’s also worth noting the 100-put strike region could be supportive, with little overhead call resistance. Additionally, the 110- and 130-strike calls could act as magnets.
Now looks like an excellent opportunity to bet on Expedia stock’s next move with options, as premiums are affordably priced. This is per EXPE’s Schaeffer's Volatility Index (SVI) of 37%, which sits in the low 7th percentile of annual readings.
Our recommended July call has a leverage ratio of 8.7, and will double on a 11.5% pop in the underlying shares.