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An Unwind in Pessimism Could Send Energy Stock Surging
Schaeffers Investment Research· 2025-11-21 17:56
Group 1 - Energy provider NXT tested its 50-day moving average and pivoted higher, clearing key resistance levels at $90.48 and $93, indicating bullish momentum [1] - Short interest is modest at 3.5% of the total available float, suggesting potential for further upward movement as shorts cover their positions [1] - The put/call open interest ratio (SOIR) of 2.17 ranks in the 94th percentile, indicating a significant level of pessimism that could unwind and propel the stock higher [1] Group 2 - There is a heavy buildup of put open interest at the 90 strike, which may provide options-related support for the stock [1] - A recommended call option has a leverage ratio of 4.5, indicating that it will double on a 23.5% rise in the underlying equity [1] - Subscribers to Schaeffer's Weekend Trader received detailed options trade recommendations, highlighting the potential for significant market movements [2]