Pinterest, Inc. stock trades under the ticker PINS, and closed for trading at $59.58 on Tuesday 11/3/2020.
After gapping up on 10/29/2020, they have begun to establish a new range, after a very strong recovery from the depths of market lows in late February/March.
I have previous traded PINS call options over the summer months, and am seeing another opportunity to profit from calls & common shares of their stock again.
With the last few days showing a bit of weakness, there is a better shot for longer-term investors to get a better price as they continue to climb.
For a short-term trader using options, the $61 or $62 calls (they offer 11/6, 11/13 & 11/20 expiration) look most appealing, as currently in pre-market trading they are up another 3% from yesterday’s price, to $61.40.
Given that most traders aren’t able to buy yet for today, you can expect to see that go even higher in the early morning hours of today’s session.
PINS Stock Price: $59.58
10 Day Moving-Average: $53.06
50 Day Moving-Average: $41.98
200 Day Moving-Average: $26.91
RSI: 68
Buying the $60 calls may be safer, but also be marked up to a premium not worth paying vs. the $61’s or $62’s.
Before buying any puts, I would look to see what their technical movement looks like intra-day, as the news regarding the election, COVID & international relations/terror may weigh on their price & begin to show where the top may be.
At the moment however, it looks like the $64-$65 short-term expiration (11/6) for puts may be the best bet for hedging.
This is a stock that will continue to benefit from COVID, and given other countries are resuming lockdowns again, they may be able to muster more strength with the “stay-at-home” economy, especially if there is another virus surge in the US, warranting more shutdowns.
*** I DO NOT OWN ANY SHARES OF PINS STOCK ***