Delek US Holdings (DK) Soars 1.04% on Bullish Options Activity

Delek US Holdings (DK) shares surged 1.04% today, reaching their highest level since October 2024, with an intraday gain of 2.77%.

The strategy of buying DK shares after they reached a recent high and holding for one week resulted in poor performance. The strategy's CAGR was -11.33%, with a total return of -45.07% and an excess return of -134.99%. The strategy also had a high maximum drawdown of -69.62% and a Sharpe ratio of -0.22, indicating significant risk and negative returns.

One of the key factors driving the stock price movement is the unusually large options trading activity observed. Traders acquired 20,686 call options on the company, indicating significant interest or expectations of stock price movement. This heightened activity suggests that investors are bullish on the company's prospects, potentially driving up the stock price.

Additionally, Goldman Sachs Group raised their price target for Delek US from $15.00 to $17.00, maintaining a "neutral" rating. This adjustment may influence investor perception and contribute to the stock price increase, as it reflects a more optimistic outlook on the company's future performance.

On the other hand, JPMorgan analyst John Royall lowered the price target for Delek US from $20.00 to $19.00. This adjustment could reflect a more cautious stance on the company's valuation, potentially impacting investor sentiment and stock price. However, the overall market sentiment appears to be positive, as indicated by the recent stock price surge.