GitLab Stock Pops After Upbeat Earnings

GitLab posted better-than-expected second-quarter results

GitLab Inc (NASDAQ:GTLB) stock is up 5.2% at $52.33 at last check, after the company’s better-than-expected second-quarter results. No fewer than nine analysts raised their price targets after the event, including Piper Sandler to $65 from $52. 

On the charts, familiar pressure at the $55 level appears to be keeping today’s gains in check. Support at its 80-day moving average helped guide the stock higher in August, and it conquered pressure at the 320-day moving average last week. On track for its sixth-straight day of gains, GTLB is up 15.9% since the start of the year. 

So far in the options pits today, 22,000 calls and 9,336 puts have been exchanged, which is already 14 times the average daily volume. The September 55 call is the most active contract, with new positions being bought to open there. 

This bullish sentiment is keeping with recent activity amongst options traders. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GitLab stock’s 50-day call/put volume ratio of 2.62 ranks higher than 95% of readings from the past year. 

It’s also worth noting that short interest represents 8.8% of the stock’s available float. It would take over three days for shorts to cover their positions, at GTLB’s average pace of trading.

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