WDC is on track for its ninth-straight daily loss
Western Digital Corp (NASDAQ:WDC) stock is down 7% at $50.08 at last check, investors brushing off the company's upbeat fiscal second-quarter earnings report after the tech name's current-quarter forecast came in below expectations. Plus, a slew of bear notes is weighing on the stock, with no fewer than six analysts slashing their price targets. Mizuho was one of these firms, and cited the weak guidance, supply constraints, and lower average selling price of NAND memory products.
Earlier today, WDC slipped to a fresh annual low. The best tech stock to own in December, historically, the stock has been slipping since its end-of-the-year rally. Already down 23.8% year-to-date, today's slump has the shares dropping below support at the $54 level. Should these losses hold, Western Digital stock is on track for its ninth-straight day of losses.
It's worth noting, however, that WDC could be due for a short-term bounce. The stock's Relative Strength Index (RSI) of 13.8 sits firmly in "oversold" territory.
Plenty of call traders appear to be eyeing the dip. So far, 11,000 calls have crossed the tape, in comparison to 6,346 puts, with options volume running at four times what's typically seen at this point. The weekly 1/28 55-strike call is the most popular, followed by the 51-strike call in the same weekly series, with new positions being opened at the latter. Both these contracts expire at the end of the day today.