The equity's latest peak comes amid historically low implied volatility
The shares of PulteGroup, Inc. (NYSE:PHM) have added more than 54% in the last six months. The security has been making its way higher with support from the 20-day moving average, after pulling back to the $52 region in March as it took a breather from a Feb. 2, one-year high of $60.89.
A historically bullish signal now flashing could mean more tailwinds for PHM, which is today pacing for a third-straight daily win. According to Schaeffer's Quantitative Analyst Rocky White, PHM's latest peak comes amid historically low implied volatility (IV), which has been a bullish combination for the shares in the past.
White's data shows seven other signals during the last five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower. This is currently the case with PulteGroup stock's SVI of 29%, which sits in the 1st percentile of its annual range.
One month after these signals, shares were higher 57% of the time, averaging a 3.1% gain. From its current perch, a move of similar magnitude would place the equity at a fresh one-year high of $61.96.
A sentiment shift in the options pits could push the shares higher still. This is per their Schaeffer's put/call open interest ratio (SOIR) of 3.87, which ranks higher than all other annual readings. This suggests short-term options traders have rarely been more put-biased.