SE's recent rally comes amid historically low implied volatility (IV)
One of Schaeffer's Top Picks for 2025, Sea Ltd (NYSE:SE) is looking like a good option for bulls in the near term. Up 2.8% at $118.39 at last glance today, the equity is headed for its fifth-straight daily win as it heads back up toward its Dec. 9, two-year high of $119.47. Shares could have more room to run, too, as they are flashing a historically bullish signal on the charts.
SE is sporting low implied volatility (IV) while sitting within 2% of a 52-week high (or in this case, its recent two-year high), as demonstrated by its Schaeffer's Volatility Index (SVI) of 35%, which ranks in the low 7th percentile of its annual range. Per Schaeffer's Senior Quantitative Analyst Rocky White, Sea stock saw six similar signals in the past three years, after which it was higher one month later 83% of the time, averaging a 9.6% gain.
The security is 218% higher year over year. Nevertheless, short interest has continued to build. An unwinding of pessimism later on could provide additional tailwinds for SE.