EARN25

LOGI Moves Lower Despite Upbeat Forecast, Earnings

Bulls are blasting the stock in the options pits, however

Deputy Editor
Jan 19, 2021 at 10:20 AM
facebook X logo linkedin


The shares of Logitech International SA (NASDAQ:LOGI) are down 2.3% at $98.62 at last check, despite the company raising its full-year forecast for the third time, and reporting upbeat fiscal third-quarter earnings. After the close yesterday, Logitech posted earnings of $2.45 per share -- much higher than the anticipated $1.02 per share -- as well as a revenue beat.

After the formerly resistant $75 level caught an early-November pullback, LOGI rallied to a fresh Jan. 8 all-time high of of $105.85. Up around 112% year-over-year, the equity isn't too far from those highs, and is now testing support at the ascending 20-day moving average. 

Analysts are mostly optimistic toward the security. Four of the seven in coverage sport a "strong buy" rating on Logitech stock, while the remaining three carry a lukewarm "hold." Plus, the 12-month consensus price target of $108.39 is a 9.1% premium to current levels.

The options pits, on the other hand, have been extremely bearish. This is per LOGI's 10-day put/call volume ratio of 1.65 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 92% of readings in its annual range, showing a strong penchant for puts relative to the last year. 

Drilling down to today's options activity, over 6,000 calls have already crossed the tape, which is 15 times what is typically seen at this point. Most popular is the February 100 call, followed by the 150 call in the same monthly series, with new positions currently being opened at both.

 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here