Vistra Corp (NYSE:VST) stock is up 1.4% to trade at $173.87 at last glance, while sporting a 10.9% nine-month lead. Shares are trading at their highest level in just over one month, while eyeing an eighth-straight daily gain stemming from a bounce off their lowest level since May. Overhead pressure at $180 lingers, after capping rallies over the last three months, but a historically bullish signal now flashing may provide the additional push VST needs to break out.
The trendline in question is the equity’s 80-day moving average. Per Schaeffer’s Senior Quantitative Analyst Rocky White, this “crossover” event has happened nine times during the last thee years, after which Vistra stock was higher one month later 78% of the time, averaging an 8.3% pop. From its current perch, a similar move would have the shares trading back above $188 for the first time since November.
Options traders have been more bullish than usual. This is per the security’s 50-day call/put volume ratio of 2.58 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than readings from the last 12 months.
Options look like a solid way to capitalize on Vistra stock’s next moves. Traders are now pricing in low volatility expectations, per its Schaeffer’s Volatility Index (SVI) 59%, which sits in the low 21st percentile of annual readings.
