Discount Retail Stock Sporting Technical Support

An unwinding of pessimism could help give the shares a lift as well

Jan 2, 2026 at 3:51 PM

DLTR

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

Discount retailer Dollar Tree Inc (NASDAQ:DLTR) has support in place at its 20-day moving average, a trendline that helped contain a pullback from a 3.6% post-earnings gain earlier this month. This level has held as support, and coincides with areas that previously held amid August highs.

The $120 area nearby is also home to a large open interest peak and could serve as options-related support in the event of any additional pullbacks. Short sellers have had enough, with bearish bets down 9% in the most recent reporting period. Yet with 8% of the stock's total available float sold short, an unwinding of more bearish positions could send DLTR higher.

That unwind could also happen via options; per DLTR's Schaeffer's put/call open interest ratio (SOIR) sitting at a put-dominant 1.17

Our recommended March call has a leverage ratio of 6.5 and will double on a 16% rise in the underlying equity.

Follow @Schaeffers

The $25k Day Trading Barrier is Gone. It's Time to Put Your Capital to Work.

For years, the PDT rule put a major roadblock in front of active traders. The barrier is no longer standing in the way.

But having more freedom doesn't mean every trade is worth taking.

With Dynamite Day Trading Signals, you'll receive up to 2 options trade alerts per week, each targeting 50%+ gains in a single session.

NO holding positions overnight.

NO waiting weeks for a trade to develop.

Just focused options trades designed to capitalize on opportunities as they emerge.

👉 Get Access to Dynamite Day Trading Signals