GTLB is below tech support
GitLab Inc. (NASDAQ:GTLB) Despite the company’s better-than-expected fourth-quarter results, the stock is plunging today. More than a dozen analysts, including JP Morgan Securities, also lowered their price targets from $45 to $33.
GTLB is down 29.6% to trade at $31.40. With this bear gap, GitLab’s stock price is supported at the $42 level. Moreover, the stock’s 320-day moving average has rejected the move to the $58 levels seen in early February.
Option bears are active in the option pit. The International Stock Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) have picked up 1.65 puts on all calls over the past 10 days. This ratio ranks in the 98th percentile of the annual range, indicating that puts are being picked up at a much faster rate than normal.
To date, 14,000 calls and 13,000 puts have been exchanged. That’s 16 times more than we normally see today. The April 25 put is by far the most popular contract.
It’s also worth noting that short sellers are buying back bearish bets, with short interest rates down 26% over the last two reporting periods, but still accounting for 8.5% of the stock’s available float. The average trading pace of GTLB takes nearly four days to cover.