Historic Signal Says Chewy Stock Has More Room to Run

Core Insights - Chewy Inc (NYSE:CHWY) is currently trading at $37.50, reflecting a 29.2% year-over-year increase, with the $36 level acting as a support floor after a recent pullback [1] - The stock has shown a strong trend, with a longer-term trendline indicating potential for further gains [1] Group 1: Stock Performance - The stock is within 0.75 of the 260-day moving average's 20-day average true range (ATR), having spent over 80% of the last 10 days and 42 days above this trendline [2] - Historical data shows that similar conditions have led to an 83% probability of the stock being higher one month later, with an average gain of 12.4% [2] - A similar upward movement could push the stock price above $42 [2] Group 2: Options Market Sentiment - The current put/call open interest ratio (SOIR) for Chewy is 1.02, indicating a higher level of pessimism compared to the past year [5] - Options are considered reasonably priced, with a Schaeffer's Volatility Index (SVI) of 42% ranking in the 19th percentile of its annual range, suggesting low volatility expectations from options traders [5]