Spotify Stock Chart Looks Great for Bulls

Analyst tailwinds could come from overdue upgrades for the outperforming stock

May 10, 2024 at 12:04 PM
facebook X logo linkedin


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

Shares of Spotify Technology SA (NYSE:SPOT) retested their 50-day moving average after earnings late last month, and are now trading above all major trendlines. The equity also filled a post-earnings gap, which potentially shook out weak-handed bears. A third attempt to breakout from the round $300 mark and move above that level could see a run on higher strike to $330 or $340. Adding to this bullish technical setup, SPOT just bounced right into a stacked put open interest level at the 280- and 270-strike.

A shift in options trader sentiment could help the shares move higher. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security’s 50-day put/call volume ratio of 1.15 is higher than 86% of annual readings. It’s worth noting that this ratio has rolled over from a peak, and price action tends to shift higher in the instances.

Short interest is relatively low, but the shares have rallied amidst a near 50% build since early December. And despite the outperformance, 11 covering brokerages still recommend a tepid “hold” on SPOT.

Amid a post-earning volatility crush, now looks like the right time to speculate with options. Spotify stocks' Schaeffer's Volatility Index (SVI) of 34% ranks in the low 11th percentile of 12-month readings, meaning options traders are pricing in lower-than-usual volatility expectations.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI