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.
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.