ETSY is having a monster session
Etsy Inc (NASDAQ:ETSY) is having a huge day on the charts, and call trading is surging as a result. Call volume is set to hit a 52-week high, with four times as many crossing compared to their put counterparts. New positions are opening at the February 60 and 65 calls, the most popular contracts today. Anyone buying to open positions here is wagering on ETSY stock pushing above the strikes by the close on Friday, Feb. 15, when the options expire.
The increased demand in near-term options has driven up the security's 30-day at-the-money implied volatility to 63.7%, which ranks in the 86th annual percentile, pointing to elevated premiums. This comes after a relatively quiet stretch from the stock, judging by its 30-day historical volatility of 35.6%, ranking in the bottom quartile of its annual range.
Etsy shares were last seen trading up 7.1% at $58.60, after hitting an all-time high of $60.58 earlier, though there's no clear catalyst for today's price action. The stock is up almost 218% year-over-year now, recently enjoying support from the 20-day moving average.
Meanwhile, this sharp rise in ETSY stock puts it above the average analyst price target of $57.46. What's more, more than 8% of the equity's float remains in the hands of short sellers, despite a 12.9% drop in the last two reporting periods. So from a contrarian perspective, the e-commerce concern could benefit from a round of price-target hikes and/or short covering.