Stitch Fix Stock Swings Higher Despite Bear Notes

Options traders are chiming in at six times the intraday average volume

Deputy Editor
Sep 19, 2023 at 10:51 AM
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Stitch Fix Inc (NASDAQ:SFIX) stock has reversed its premarket losses, up 5.9% at $3.23 at last glance. The styling platform announced wider-than-expected fiscal fourth-quarter losses of 24 cents per share, though revenue beat estimates, after which no fewer than six analysts lowered their price targets. 

On the charts, SFIX has closed 11 of the last 12 days lower, and finished six out of the last seven weeks in the red. Familiar support at the $2.80 level seems to have captured today's earlier pullback, however. Today's bounce could have already been in the cards, per the security's 14-day relative strength index (RSI) of 27.8, which sits in "oversold" territory.

So far today, 5,839 calls and 3,777 puts have been exchanged, which is six times the amount typically seen at this point. The weekly 9/22 3.50-strike call is the most active, with new positions being opened at the 3-strike call in the same weekly series. 

Call traders have been targeting SFIX at a much faster-than-usual rate lately. The security's 50-day call/put volume ratio of 2.35 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 99% of readings from the past year. 

Conversely, analysts are overwhelmingly bearish on Stitch Fix stock, with all 14 in coverage carrying a "hold" or worse rating. It's also worth noting that short interest represents 11.7% of the stock's available float. 

 

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