Levi Strauss Stock Hits 2-Year Highs on Upbeat Forecast

Levi Strauss & Co (NYSE:LEVI) stock is soaring to two-year highs, up 16.9% at $21.81 at last glance, earlier hitting a peak of $22.39. The retailer posted strong first-quarter earnings and stellar 2024 forecast thanks to direct customer sales and cost-saving measures, including job cuts and fewer promotions. Plus, no fewer than seven analysts lifted their price targets after the event. 

On track for its highest single-day percentage gain since March 2020, LEVI is up 33% since the start of the year. Recent support at the 40-day moving average has helped guide the shares higher, catching last session's pullback to the $18 level. 

Options traders are blasting LEVI in response. So far today, the stock has already seen 10.4 times its average daily options volume, with 21,000 calls and 18,000 puts exchanged. The April 20 put and April 22 call are the most popular positions, with new positions opening at the former. 

A sentiment shift appears to be occurring amongst traders as well, as there was plenty of pessimism to unwind headed into today. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LEVI's 10-day put/call volume ratio of 2.72 ranks higher than 96% of readings from the past year, showing a strong penchant for puts over the past two weeks. 

It's also worth noting that short interest represents 11.4% of the stock's available float. It would take shorts roughly six days to cover their bets, at LEVI's average pace of trading.