Trade Desk Stock Poised to Pay Call Traders

Short sellers may be in for a squeeze

Jun 13, 2023 at 11:40 AM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this TTD 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.

The shares of Trade Desk Inc (NASDAQ:TTD) crossed over and slightly pulled back to the $74 area after the company’s most recent quarterly report, which is a level that is 4,000% its initial public offering (IPO) return, and previously acted as resistance around earnings. The security also conquered the $66 region, which was a ceiling from February to late May, and is nearly double its 2022 close.

TTD Chart June 132023

This recent rally may squeeze short sellers, who would take more than four days to cover their bearish bets, at the stock’s average pace of trading. Meanwhile, total put open interest (OI) outweighs call OI.

It’s also worth noting that implied volatility (IV) for TTD stands at a 52-week low. Our recommended October call has a leverage ratio of 4.3, and will double on a 25.1% pop in the underlying shares.

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