Options Bulls Blast Surging Telehealth Stock After Earnings

Group 1 - Hims & Hers Health Inc (NYSE:HIMS) reported a 300% increase in net profits for the first quarter, surpassing both top- and bottom-line estimates [1] - Despite a negative outlook, HIMS received four price-target increases, including a rise from Leerink Partners to $42 from $40 [1] - HIMS shares rose 9.9% to $46.06, recovering from premarket losses and reaching their highest level since February [1][3] Group 2 - Options trading activity is significantly high, with 267,000 calls and 188,000 puts traded, which is six times the average intraday volume [2] - The most popular options contracts are the weekly 5/9 45-strike call and the 50-strike call, with new positions being opened [2] - HIMS is on track for its fourth consecutive daily gain, consolidating above the 60-day moving average and showing a 296% year-over-year increase [3] Group 3 - Short interest in HIMS has increased by 10.8% in the last two reporting periods, with 60.88 million shares sold short, representing 31.9% of the equity's available float [7] - There is potential for a short squeeze if the current pessimism begins to unwind, which could lead to further price increases for HIMS [7]