DASH has held above its March and April highs
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DoorDash (DASH) shares have found support at a confluence of key technical levels, including their 200-day and six-month moving averages, as well as their year-to-date anchored volume-weighted average price (AVWAP). The equity has also held above its March and April highs, reinforcing this area as a potential technical floor.
Options-related support could come into play as well. Peak put open interest (OI) across all expirations sits at the 190 strike, while the front-month 185 strike is also home to substantial put OI.
Options traders have been unusually bearish, per DASH's 50-day buy-to-open put/call volume ratio of 1.46 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 97th percentile of its annual range. An unwinding of this pessimism could provide additional tailwinds for the shares.
Now looks like an attractive time to weigh in with options. DASH's Schaeffer’s Volatility Index (SVI) of 45% ranks in the low 14th percentile of its annual range, indicating options traders are pricing in relatively low volatility expectations at the moment. The stock has tended to exceed these expectations as well, per its Schaeffer’s Volatility Scorecard (SVS) of 84 out of 100.
Our recommended call has a leverage ratio of 6.15 and will double in value with a 17.45% move in the underlying equity.