) has been an outperformer on the charts, gaining nearly 43%
year-to-date, and about 62.5% on a year-over-year basis.
What's more, the stock tagged a new multi-year high of $14.83
yesterday. Meanwhile, the equity's late August/early September
pullback was contained by its 40-week moving average, which has
acted primarily as a floor since late May.
However, there is still plenty of skepticism levied against the
passenger airline. Short interest soared by more than 94% during
the past two weeks, and now represents over four days' worth of
pent-up buying pressure, at LUV's average pace of trading.
Should the shares continue to trek higher, they could benefit from
a wave of short-covering activity down the road.
Elsewhere, the brokerage bunch is divided toward Southwest Airlines
Co., as the security maintains six
endorsements, compared to four
, and two
Additionally, the stock's average 12-month price target of $15.46
reflects expected upside of just 6% to LUV's current perch at
This leaves plenty of room for a round of upgrades and/or
price-target hikes, which could end up serving as tailwinds for the
) has enjoyed a banner 2013, boasting a year-to-date advance of
more than 57% to trade at $16.70.
Furthermore, the shares have outperformed the broader
S&P 500 Index
(INDEXSP:.INX) by roughly 11 percentage points during the past
three months. Also, a look at the charts reveals that the
$16.60-$16.80 area has emerged as an area of support in recent
Nevertheless, the stock continues to be pummeled by pessimists.
During the latest reporting period, ATVI saw a 28.7% spike in short
interest, bringing the number of shares sold short to almost 11
This ample amount of available sideline cash could fuel a
short-squeeze scenario, should the equity continue along its upward
Meanwhile, data from the International Securities Exchange, Chicago
Board Options Exchange, and NASDAQ OMX PHLX shows a 10-day put/call
volume ratio of 1.83 for Activision Blizzard, confirming puts
bought to open have nearly doubled calls during the past two weeks.
In fact, this ratio ranks higher than 95% of similar readings taken
over the past year, signaling speculators have been snapping up
puts over calls at a near-annual-high pace. An unwinding of these
bearish positions could add more fuel to ATVI's tank.
Michael Kors Holdings Ltd.
) has also been a solid performer on the technical front, climbing
more than 48% so far this year-and outshining the S&P 500 by
about 15 percentage points over the most recent three month time
frame-to hover at $75.76.
The security also reached a fresh record peak of $78.62 on
September 19, and the subsequent pullback was cushioned by its
40-day moving average.
Even so, the clothing designer remains surrounded by naysayers.
KORS saw a 24.5% jump in short interest over the past couple of
weeks, and now these pessimistic positions account for a healthy
4.3% of the stock's available float.
With north of 6.4 million shares currently sold short, the security
could be poised for further gains, should this group of skeptics
hit the exits.
Also, Schaeffer's put/call open interest ratio (SOIR) for Michael
Kors checks in at 1.02, conveying puts slightly outweigh calls
among options expiring in the next three months.
This ratio registers in the 77th annual percentile, implying
near-term traders are more put heavy toward the equity than usual
This host of put positions-particularly at the underfoot October
72.50 and 75 strikes, which collectively hold open interest of
3,054 contracts-could end up translating into options-related
support in the short term.
Editor's Note: This
Schaeffer Investment Research
article by Terri Stridsberg was originally syndicated by
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