Call Buyers Dominate Under Armour (UA) Options Pits

Two brokerage firms weighed in on Under Armour Inc (UA)

Digital Content Group

Apr 8, 2015 at 2:09 PM

Under Armour Inc (NYSE:UA) is 1.8% higher today at $82.29, and earlier touched a record high of $82.80, after FBR raised its price target on the shares to $92 from $90, and DA Davidson boosted its price target to $88 from $81. In the options pits, call volume is accelerated, with possible buy-to-open activity at the April 80 call. Traders purchasing the contracts are looking for further gains above the round-number $80 level by the time the options expire at the close next Friday, April 17.

Looking back, UA options traders have been decidedly put-skewed. The stock's Schaeffer's put/call open interest ratio (SOIR) comes in at 1.47 -- higher than 98% of all readings from the past year. Going by this, short-term traders have been more put-focused only 2% of the time in the last 52 weeks.

Under Armour Inc (NYSE:UA) has now added 21.2% in 2015, and could get a boost from more positive attention from analysts. For example, 12 brokerage firms maintain "hold" or worse ratings on the equity. Plus, UA has already surpassed its consensus 12-month price target, which sits at $78.85. In other words, the stage is set for additional upgrades and/or price-target hikes.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!