UAA closed June in the black for eight of the last 10 years
As already stated, the S&P 500 (SPX) steers into a historically bearish month. With that in mind, we have a list of 25 best performing stocks June own. Below we will explore Under Armor Inc (NYSE: UAA), which appeared on the list and fell 1.9% to $ 22.27. However, it’s still worth digging deeper into the tech setup of security as now may be the perfect time to speculate about the UAA’s next move with options.
According to Schaeffer’s senior quantitative analyst Rocky White, Under Armor stock rose an average of 8.23% over the past 10 years in June. Plus, UAA ended the month in the black 80% of the time. Safety is also among the top 10 percent winners on the list and is the only personal merchandise name that made it through.
A move of similar magnitude would put the UAA just above the $ 24 mark, which coincides with a bull signal that is moving the stock higher after falling back to the historically bullish 80-day moving average. Under Armor stock is up nearly 30% in 2021, bottoming out at both the $ 22 mark and the supportive 100-day moving average.
A short press could increase security even further. The 16.83 million stocks sold short account for 9% of the stock’s available free float, or purchasing power pent up over three days.
Sentiment around the stock has been mostly bullish lately. On the International Securities Exchange (ISE), the Chicago Board Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), the UAA’s 10-day call / put volume ratio of 23.23 is even above all other values of the past year. In simpler terms, options traders have rarely had such a healthy appetite for calls.
After all, now looks like an ideal opportunity to buy Under Armor stock options. This is because the Schaeffer’s Volatility Index (SVI) of stocks is 38% in the extremely low second percentile of its annual range. This means options traders are currently pricing in low volatility expectations – a boon for premium buyers.