Schaeffer’s Top Pick for 2024 Chewy Inc (NYSE:CHWY) is up 13.5% to trade at $25.92 at last check, previously as high as $27.08, and on track for its highest close of 2024. While the catalyst behind today’s bull gap remains unclear, CHWY previously the highest level since August 2023. has been on the rise since the bull gap following late May earnings, found support at the $22 level and now has a 63.1% quarter-to-date lead
There’s still plenty of room for upgrades, with nine of the 24 analysts calling in coverage Tough stock a ‘hold’ or worse. Meanwhile, short sellers are showing up, and a continued exodus could continue to boost stock prices. Short interest has fallen 21.3% over the past two reporting periods, but still represents 14.2% of the available share price.
Options traders are in on the action, with 157,000 calls and 72,000 puts traded so far today, which is six times the volume typically seen at this time. The most active is the June 25 call, followed by the 22.50 put in the same monthly series, both opening new positions.
Options pits have been solidly bullish over the past two weeks, according to the stock’s 10-day call/put volume ratio of 4.56 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). which is higher than 86% of annual measurements.
These options traders are pricing in low volatility expectations. The Schaeffer’s Volatility Index (SVI) of 17% is higher than just 18% of the past twelve months’ figures.
