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Shifting Sentiment Could Help Wayfair Stock Extend Rally
['Laura Mccandless', 'Mon', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
E-commerce platform Wayfair Inc (NYSE:W) enjoyed a massive 30% post-earnings bull gap last week.
W sports a 50-day put/call volume ratio of 1.71 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 99% of readings from the past year.
There have been three instances in the last three years that the equity's 50-day buy-to-open put/call ratio crossed over 1.0 and moved into the 90th percentile.
Per Schaeffer's Senior Quantitative Analyst Rocky White, Wayfair was higher one month later 100% of the time after these signals with an average 11.1% return.
It would take shorts nearly four days to cover their bets, at W's average pace of trading.