Resilient Fintech Stock Flashing Intriguing “Buy” Signal

Core Insights - Affirm (AFRM) stock is facing challenges in a competitive fintech sector, experiencing a decline of 7.3% on Thursday and 3.6% on Friday, despite showing bullish signals earlier in the week [1] - The stock closed above its 50-day moving average for the first time since September 24, which historically has led to an average next-month return of 10.6% with a 67% win rate [2] - Year-to-date, AFRM is up 17.8% and remains in a long-term uptrend, with significant psychological support at the $30 level [4] Market Sentiment - There has been a notable increase in put options popularity, with a 50-day put/call volume ratio of 1.30, ranking higher than 95% of readings from the past year [5] - The Schaeffer's put/call open interest ratio (SOIR) of 1.00 is in the 90th percentile of annual readings, indicating a bearish sentiment among options traders [5] - The Schaeffer's Volatility Index (SVI) is in the 6th percentile of annual readings, suggesting low volatility expectations, while AFRM typically outperforms these expectations [6]