Q2 STOCKS TO BUY

Ulta Salon (ULTA) New High Entices Bulls

Upbeat analyst attention sent Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) to a record peak

Apr 15, 2015 at 10:44 AM
facebook X logo linkedin


Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) hit a record high of $156.30 earlier -- and was last seen up 0.9% at $154.81 -- after Piper Jaffray raised its outlook on the shares to "overweight" from "neutral," and increased its price target to $170 from $158, echoing the general consensus seen among the brokerage bunch. Option traders are responding in kind, with calls trading at 1.4 times what's typically seen at this point in the day, and outpacing puts by a nearly 4-to-1 margin.

Receiving notable attention is ULTA's April 155 call, where it appears new positions are possibly being purchased for a volume-weighted average price (VWAP) of $1.23. Based on this average entry price, breakeven for today's call buyers at this Friday's close -- when front-month options expire -- is $156.23 (strike plus VWAP), just a chip-shot away from today's milestone.

Expanding the sentiment scope reveals traders have shown a distinct preference for calls over puts in ULTA's options pits of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ULTA's 10-day call/put volume ratio of 7.31 ranks 1 percentage point from a 52-week peak. Echoing this is the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.31, which rests at an annual low. In other words, short-term speculators are more call-heavy now than they've been at any other point during the past year.

This glass-half-full approach shouldn't be too surprising, considering the stock has added 72% over the last 12 months. Helping lift the shares higher since last July has been their 30-day moving average, although more recently, Ulta Salon, Cosmetics & Fragrance, Inc.'s (ULTA) 10-day trendline has emerged as support.

Daily Chart of ULTA Since April 2014 With 10-Day and 30-Day Moving Averages
 
 

“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