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FSLY Shares Upgraded at Piper Jaffray

Fastly options traders have been buying calls

Jan 2, 2020 at 9:48 AM
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Piper Jaffray this morning upgraded its stance on cloud services stock Fastly Inc (NYSE:FSLY) to "overweight" from "neutral," saying the coming year will be big for the company's customer delivery network business, given live events such as the Olympics and presidential elections in the U.S. Most analysts were already bullish on FSLY stock, with 70% in coverage handing out "strong buy" recommendations.

Options traders have also been showing optimism, based on trading at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The 10-day call/put volume ratio across these exchanges is 3.72, showing almost four long calls for every long put in the past two weeks. Still, peak open interest rests at the January 2020 20-strike put.

On the charts, the shares have been struggling since their all-time high of $35.20 from September, with the 50-day moving average applying pressure in recent weeks. Today, though, the stock is up 7.8% at $21.64 after the bullish analyst attention, which is higher than the company's initial public offering (IPO) price of $16 from last May.

 
 

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