DOCU's 80-day moving average may put the stock closer to its September peak
The shares of DocuSign Inc (NASDAQ:DOCU) are down 3.2% at $227.68 at last check, though the negative price action may be related to the broader-market headwinds on Wall Street today. And while the security has been cooling off from a Sept. 2 all-time high of $290.23 over the last few months, it still sports an impressive 205.5% year-over-year lead. The even better news is that the equity's recent pullback has it close to a historically bullish trendline, which could catapult DOCU even higher in the coming weeks.
Diving straight in, DocuSign stock just came within one standard deviation of its 80-day moving average after spending most of January above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals have occurred during the past three years. In 83% of those instances, DOCU enjoyed a positive return a month later, averaging a 10% gain. From its current perch, a move of similar magnitude would put the security just over the $250 mark -- closer to its September peak.
An unwinding of pessimism in the options pits may create additional tailwinds for the security. This is per DOCU's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 96% of readings from the past year. In simpler terms, puts are being picked up at a quicker-than-usual pace.
Now could be a good opportunity to take advantage of DocuSign stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 55% sits in the relatively low 20th percentile of its annual range. In other words, DOCU sports attractively priced premiums at the moment.