Pure Storage Stock Primed For A Short-Term Bounce

Core Insights - Pure Storage (PSTG) has experienced a significant decline since reaching a record high of $100.45 on November 3, with a notable drop of 27.3% following its earnings report on December 3, currently trading at $66.54, approximately 33% below its peak [1] Technical Analysis - The stock is currently supported by its 180-day moving average, which is helping to limit losses [2] - PSTG is within 3% of its 12-month moving average, having closed above this trendline for the past five months. Historically, this signal has led to a higher stock price one month later 80% of the time, with an average gain of 7%. Three months post-signal, the average gain is 25.8%, with 60% of returns being positive [2] Options Market - Options appear to be a favorable strategy for PSTG, as the stock is showing a short-term bullish signal. The current premiums are attractively priced, indicated by a Schaeffer's Volatility Index (SVI) of 45%, which is in the low 17th percentile of its annual range, suggesting low volatility expectations from options traders [4]