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Affordable Software Stock Ripe for Bullish Attention
Schaeffers Investment Research· 2026-01-23 17:46
Group 1 - Short interest has more than doubled over the past month, sitting near one-year range highs, indicating potential buying opportunities in the subsequent months [1][3] - Options are currently affordable, with the Schaeffer's Volatility Index (SVI) reading at 66%, ranking in the 29th annual percentile, suggesting favorable conditions for bullish positions [1][3] - The recommended March call has a leverage ratio of 5.3, which will double on a 22.3% rise in the underlying equity, highlighting the potential for significant gains [1] Group 2 - JFrog Ltd (NASDAQ:FROG) experienced a 27% post-earnings increase on November 7, which has provided support during its recent pullback [2] - The shares are trading at their 100-day moving average, a trendline that has shown favorable results recently [2] - Put support is identified between the 55 and 60 strikes, while peak call open interest at the 60-strike has dissipated, indicating potential movement towards higher strikes if the stock breaks above $62.50 [2]