Columbia Stock Hits Triple Digits After MidCap Move

COLM has toppled two key trendlines this week

Outdoor apparel maker Columbia Sportswear Company (NASDAQ:COLM) got a dose of good news this morning, after it was announced the stock would join the S&P MidCap 400. Columbia will replace Uniti Group (UNIT), effective next Monday, Dec. 23. In response, COLM is up 5.6% to trade at $100.03 today.

For the past three months, Columbia stock has faced stiff resistance at its 50-day moving average. The shares took out that level on Monday, and today took out the overhead 200-day trendline, an area that hasn't been conquered on a closing basis since mid-October. Year-to-date, COLM is up 12.2%, but remains far off its Feb. 8 record high of $109.74.

The equity is ripe for a short squeeze, which could fuel additional gains. Short interest increased by 29.4% in the two most recent reporting periods to 1.41 million shares, the most since October 2017. The takes up a healthy 4.7% of COLM's total available float, and more than four days' worth of buying power, at the stock's average pace of trading.

Now looks like an attractive time for those wanting to speculate on the security's next move with options. The retail concern's Schaeffer's Volatility Index (SVI) of 20% sits bottom percentile of readings from the past year.