Schaeffer's Top Stock Picks for '25

PINS Could Continue to Post Big Gains in 2021

Premiums are reasonably priced at the moment, too

Apr 7, 2021 at 2:18 PM
facebook X logo linkedin


The shares of social media name Pinterest Inc (NYSE:PINS) have reclaimed the $76 mark, which had been an area of resistance for the past several weeks, and is four times above its initial public offering (IPO) price. Plus, thanks to a solid 13% gain the last seven days,  the security has distanced itself from its year-to-date breakeven level, making now good time to speculate on PINS’ next move with call options.
 
Though analysts are mostly bullish towards Pinterest stock, there is still some room for upgrades, which could push shares higher. Of the 19 in question, six still carry a tepid “hold” rating.
 

Short sellers keep piling on, though. Short interest has increased 61% year-to-date, and is now only 20% below record peak since the stock’s IPO. In fact, short interest added 7.3% in the most recent reporting period, and the 21.91 million shares sold short now account for a whopping 25.4% of the stock’s available float. With the exception of those that acquired positions in February, these shorts are now underwater.
 
Additional tailwinds could come in the form of shifting sentiment in options pits. This is per Pinterest stock’s 50-day put/call volume ratio of at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 99th percentile of its annual range. In other words, long puts are being picked up at a faster-than-usual clip.
 
PINS options can be had for a bargain right now, too. The security's Schaeffer's Volatility Index (SVI) of 52% stands at the very bottom percentile of the past 12 months, or the lowest level since May 2020. In other words, the stock is sporting attractively priced premiums at the moment. Finally, our call recommendation has a leverage ratio of 4 and will double in a 23.7% pop in the underlying equity.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this PINS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading serv
 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter