Schaeffer's Top Stock Picks for '25

Call Buyers Bet on an Extended Breakout for this Hot Healthcare Stock

MiMedx shareholders may be using puts to protect paper profits

Aug 16, 2017 at 3:07 PM
facebook X logo linkedin


It's been a huge year for regenerative tissue specialist MiMedx Group Inc (NASDAQ:MDXG), with the shares soaring close to 130% year-over-year to trade at $16.94, while hitting a record high of $17.24 just yesterday. Meanwhile, options volume has been accelerated, evidenced by the fact that total open interest now stands at a 52-week high. It's more of the same today, too, as options traders are betting on an extended breakout for MDXG stock. 

Jumping right in, calls are trading at double the pace expected today, and leading the way is the March 2018 20-strike call. All signs point to buy-to-open activity here, which would mean speculators are betting on MiMedx shares toppling the $20 level by the time the contracts expire in March. 

Interestingly, puts have also been very popular on MDXG. The top open interest position belongs to the September 12.50 put, and data from the major options exchanges confirms buy-to-open activity here. Furthermore, the equity has a Schaeffer's put/call open interest ratio (SOIR) of 2.37, ranking just 1 percentage point from a 12-month high, so short-term options traders are unusually put-skewed at the moment. But given the stock's tremendous technical strength, much of this is likely due to shareholders hedging with options

Still, MiMedx could have even more upside potential, from a contrarian standpoint. First of all, short interest remains very elevated, despite a sharp drop earlier in the year. In fact, short interest actually increased over the two most recent reporting periods, and now represents over one-fifth of the stock's float. Meanwhile, the shares are now trading comfortably above their average 12-month price target of $15. As such, a short-squeeze situation and/or a round of analyst price-target hikes could provide tailwinds for MDXG. 
 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter