Over 58,000 calls have changed hands, 20 times the average intraday amount and already a year high. The call in January 2020 70 is the most popular, followed by the weekly call with 75 strikes. Buy option traders to open both contracts, suggesting that SHAK will keep its profits until the end of this and the next week when the options expire.
However, the trend towards buying calls is nothing new. The 10-day call / put volume ratio of the burger joint on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX) is 9.54 and shows strong demand for the Purchase of calls in the past few weeks.
Shake Shack shares are at their highest level since a bearish earnings gap on November 5. Although stocks rose 44.2% year-on-year, they remain far from their record high of $ 105.84 on September 5.
A quick press creates additional profits as the bears continue to expand their positions – an increase of 5.4% in most of the two reporting periods. Short selling interest accounts for 16.4% of SHAK’s total free float and 3.5 times the average trading volume.
In addition, the Shake Shack share has been more volatile than expected in the past 12 months. This is based on the Schaeffer’s Volatility Scorecard (SVS) of 87 (out of 100).