Jumia Stock Nabs 2-Year High on New 'Buy' Rating

Calls are outpacing puts in the options pits today

Digital Content Manager
Jul 9, 2024 at 2:31 PM
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Benchmark initiated coverage of Jumia Technologies AG - ADR (NYSE:JMIA) today with a "buy" rating and $14 price target, which implies a more than 65% premium to its previous close. The firm noted a demographic transformation that set the e-commerce name as a leader in Africa, and added it is at a point of inflection.

JMIA is up 29.8% to trade at $10.98 at last check, pacing for its best day since February after earlier surging to a two-year high of $11.20. The shares staged a bounce off the $7 region, which coincides with support from the 40-day moving average, and conquered their June peak. So far this year, the equity has added 212.2%.

JMIA 40 Day

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.66 ratio sits higher than all readings from the past year. This means options traders have been more bearish than usual. 

Today's bullish coverage is moving the needle, though. So far today, 33,000 calls and 13,000 puts have exchanged hands, which is triple the intraday average volume. Most active is the weekly 7/12 10-strike put, followed by the July 15 call, with positions being opened at both.

 

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