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Globalstar Stock Surges on Major Apple Satellite Update

Options volume on GSAT has exploded

Digital Content Manager
Aug 30, 2021 at 10:13 AM
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News from AppleInsider that its iPhone 13 will be able to utilize satellite communications is giving satellite services provider Globalstar, Inc. (NYSE:GSAT) a massive boost this morning. Many are now considering the penny stock one to watch, following the update, and the shares were last seen up 70.3% at $2.44. 

GSAT, which already boast a 322.3% year-to-date lead, is set to open back near its mid-February peak, and notch its biggest one-day jump since Feb. 9. The stock is also set to topple its 40-day moving average, which has kept a tight lid on shares for the better part of the third quarter, while the 200-day moving average has helped capture pullbacks since December of last year. 

Despite its price performance, short sellers have been piling on, with short interest up 9.5% in the last two reporting periods. An unwinding of some of this short interest could put some wind at GSAT's back, as the 62.23 million shares sold short make up 8.6% of the stock's available float, or nearly three days at the stock's average daily pace of trading. 

Options on Globalstar are flying off the shelves, and already volume is running in the 99th percentile of its 12-month range. So far, 17,000 calls and 4,632 have exchanged hands -- 101 times the intraday average. The most popular contract is the October 3 call, followed by the September 2.50 call, with positions being opened at both, suggesting options traders are eyeing more upside for GSAT in the coming months. 

 
 

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