Q2 STOCKS TO BUY

Herbalife Call Options Are Attractive Right Now

Herbalife stock has been rising fast in recent weeks thanks to help from its 50-day moving average

Apr 12, 2017 at 11:07 AM
facebook X logo linkedin


Shares of Herbalife Ltd. (NYSE:HLF) have been trending higher in recent weeks, gaining 16% since bottoming near $50 in mid-March, including a 0.6% gain today to trade at $59.03. Guiding the stock higher has been the all-important 50-day moving average, as the shares attempt to fill their post-earnings bear gap from February. What's more, data suggests it could be a good time to buy HLF options. 

hlf stock

Most notably, HLF shares currently boast a Schaeffer's Volatility Index (SVI) of 25%. This reading is only 2 percentage points from a 52-week low, which means near-term options are pricing in unusually low volatility expectations at the moment -- good news for premium buyers. 

Elsewhere, it's also interesting to note that despite Herbalife stock's 22.6% year-to-date lead, short interest is extremely elevated, accounting for almost half of HLF's available float. In fact, going by average daily volumes, it would take HLF short sellers roughly one month to buy back the more than 27 million shares they are in control of. This suggests there's ample sideline cash that could come in and lift the equity higher on the charts. 

Plus, Herbalife Ltd. has been all but ignored by the brokerage community. For instance, only one analyst currently covers HLF stock, and they maintain a tepid "hold" recommendation. If the shares can continue to rise, bullish analyst attention could be yet another catalyst that fuels additional gains. 
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter