Altaba Stock Looks Good for Options Bulls

The internet stock is trading near key technical support

The shares of internet name Altaba Inc (NASDAQ:AABA) just pulled back to their 40-day moving average and a pennant breakout trendline before bouncing higher. The stock has since consolidated beneath the $76.50 area, which happens to be the 10% year-over-year level.

Currently, AABA's Schaeffer's put/call open interest ratio (SOIR) of 0.97 sits in the 88th percentile of its annual range. Historically, similarly high SOIR readings have preceded rallies in the stock.

Despite the bullish price action, options bears are still piling on AABA. The security sports a 50-day put/call volume ratio of 1.29 that sits in the 93rd percentile of its annual range. This indicates a healthier-than-usual appetite for puts of late, a fact that could propel the stock higher once these pessimistic positions begin to unwind.

While analysts are relatively quiet on Altaba, there's room for upgrades and bullish initiations. The two following the stock give it a tepid "hold" rating, with not a single "buy" on the table.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this AABA 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 services.