Multiple stock prices were tracked over the same period of time

AR options are inexpensive

Don’t say the shares of Antero Resources Corporation (NYSE: AR) There is a wide market sale Come on. AR is up 0.3% to trade at $ 11.51 on the last check and hit a two-year high of $ 11.79 after seven consecutive days of earnings. In addition, Northland Capital and BMO have sneaked in with price target increases to $ 15 and $ 13, respectively. Equity rebounded from a support floor at the $ 9 level, as well as its rising 80-day moving average earlier in the month, and there is reason to believe that it could continue its rally.

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In particular, today’s high lies amid historically low Implied Volatility (IV), which historically has been a bullish combination for Antero stock. According to Schaeffers Senior Quantitative Analyst Rocky White, there have been two more times in the past five years that the stock has traded within 2% of its 52-week high while its Schaeffer Volatility Index (SVI) was in the 20th percentile of its annual range or lower. This is now the case with HSY’s 68% SVI, which is in the low ninth percentile of its 12-month range.

White’s data shows that one month after these signals, security was higher, averaging an impressive 20.7% return for that period. From its current location, a move of similar magnitude would bring the AR above $ 13 and extend its two-year high.

There’s plenty of room for upgrades that could push the inventory up as well. Of the 10 analysts in the reporting, five still have a lukewarm “hold” rating. And despite today’s price target hikes, AR’s 12 month consensus price target of $ 11.91 is a small premium of 3.5% over current price.

A quick press could also keep the wind on AR’s back. Short rates declined 3.7% over the most recent period, but the 28.37 million stocks sold were short accounts, a healthy 11.4% share of AR’s total available float.

What’s more, equity Schaeffers Volatility Scorecard (SVS) This means that Antero Resources stock exceeded volatility expectations over the past year – a boon for option buyers.


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