ROOT is on track for its largest single-day percentage gain on record
Shares of Root Inc (NASDAQ:ROOT) are skyrocketing to nearly three-year highs, after the auto insurance name posted surprise third-quarter profits of $1.35 per share. Analysts expected a loss of 87 cents per share to match last year’s results, while revenue beat estimates as well. Per CEO Alex Timm, the company “performed well beyond outside expectations.”
ROOT was last seen up 156% at $103.67, earlier trading as high as $105.50, and on track for its largest single-day percentage gain ever. The stock soared above the $86 level, which capped its rallies in April and July. Since the start of the year, the equity is up 880%.
Unsurprisingly, Root stock has already seen 14 times its average daily options volume today. The November 65 put is the most popular, with new positions being sold to open there.
A short squeeze could account for a portion of today’s tailwinds, as short interest represents 17.1% of the stock’s available float. It would take shorts over six days to cover, at ROOT’s average pace of trading.