GLUU Shares Try to Rise on Latest Bull Note

GLUU is looking to snap an eight-day losing streak

Glu Mobile Inc (NASDAQ:GLUU) is trading up 2.2% this morning at $4.85, after yet another analyst said to buy the stock. D.A. Davidson last evening released a note that gave the mobile game maker a "buy" rating and $8 price target, representing territory not explored since early June, with the $8 level actually serving as a ceiling just days before the equity's huge bear gap on Aug. 2. The brokerage firm believes the company's new Disney Sorcerer's Arena game will be its largest within a few quarters, and sees better cash generation ahead.

If the gains hold, GLUU would snap a seven-day losing streak, with its breakout attempt earlier this month running out of steam near the 50-day moving average. But while the shares have shed more than half their value since peaking at $11.75 in April, analysts are overwhelmingly bullish. In fact, all seven brokerage firms in coverage have "strong buy" recommendations in place.

In the options pits, long calls have been popular for a while, with more than nine crossing for every put during the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The front-month October 6 call saw a notable increase in open interest during this time frame. From a broader view, peak open interest is up at the December 12 call, while the 10-strike call from the same series is also home to heavy open interest.

Elsewhere, short interest has been declining fast, falling 26.2% in the last two reporting periods. There's potential for this trend to continue, too, since 8.5% of the float is sold short. If there is more short-covering, it could provide tailwinds for Glu Mobile stock.