LOGI’s intraday options volume is running at seven times the typical intraday amount
The shares of Logitech International SA (NASDAQ:LOGI) are up 11.8% at $76.43 this afternoon, after the Swiss tech firm said its sales and operating profit would contract less than it previously forecasted for fiscal 2024. The improved figures follows better-than-expected fiscal second-quarter earnings and revenue data.
Options traders have something to say about the event, but today’s action is a bit surprising. Despite the good news, it looks like bears are overtaking bulls, possibly calling today’s pop a temporary ceiling. LOGI’s typically quiet options pits show 3,025 puts and 1,723 calls crossing the tape, or seven times the intraday average volume.
Most popular is the month November 75 put, where new positions are being bought to open, followed by the 70 put from the same standard series. This speculation seems to suggest that the hype surrounding Logitech stock will fall off by next months standard expiration.
This penchant for bearish bets is the norm. According to LOGI’s Schaeffer’s put/call open interest ratio (SOIR) of 1.39 that stands in the highest percentile of annual readings, short-term options traders have never been more put-biased over the past 12 months.
Coming into today, analysts were also mostly pessimistic towards the stock. Of the nine in coverage, six rated Logitech stock a “hold” or worse, though three recommended a “strong buy.” Meanwhile, the 12-month consensus price target is a most 0.9% premium to the equity’s current perch.
On the charts, Logitech stock is today trading at its highest level in 2023, stretching its year-to-date lead to nearly 23%. Even better, the stock’s year-over-year gain is now 67.7%, breaking above $74 per share for the first time since April 2022.
