Ouster Soars 14.6% on Intraday Surge: What's Fueling the Momentum?

Summary
• Ouster (OUST) trades at $29.57, up 14.61% from its $25.80 previous close
• Intraday range spans $26.37 to $30.75, with 2.97M shares traded (6.15% turnover rate)
• Technicals show RSI at 40.42, MACD histogram at -0.46, and 30D MA at $24.94

Ouster’s explosive intraday rally has captured market attention, with the stock surging 14.61% above its 52-week low of $5.84. While no company-specific news has been disclosed, technical indicators and options activity suggest a short-term bullish momentum. Traders are now scrutinizing whether this move reflects a broader trend or a fleeting technical rebound.

Short-Term Bullish Momentum Drives Ouster Higher
Ouster’s 14.61% intraday surge aligns with a short-term bullish K-line pattern and key technical triggers. The stock has pierced above its 30-day moving average ($24.94) and is currently trading near the upper Bollinger Band ($31.07). While the RSI at 40.42 remains neutral, the MACD histogram (-0.46) indicates a narrowing bearish divergence. Options data reveals heavy call buying at the $28–$30 strike range, with the OUST20250815C29 contract seeing 30,668 shares traded. This suggests institutional positioning for a near-term price extension.

Tech Hardware Sector Diverges as Apple Trails Lower
Options and ETF Strategy for Ouster's Volatile Move
• 30D MA: $24.94 (above) | RSI: 40.42 (neutral) | MACD Histogram: -0.46 (bearish narrowing)
• Bollinger Bands: $20.54–$31.07 (current price at 92% of upper band)
• Turnover Rate: 6.15% (high liquidity)

Ouster’s technicals suggest a continuation of its short-term bullish momentum, with key resistance at $30.75 (intraday high) and support at $23.06 (30D support). The stock’s 14.61% move has outperformed the Technology Hardware sector, where Apple (AAPL) fell 0.06%.

Top Options Picks:
• OUST20250815C29 (Call): Strike $29, Expiry 8/15, IV 96.70%, Leverage 18.44%, Delta 0.585, Theta -0.264, Gamma 0.116, Turnover 30,668
– High leverage ratio (18.44%) and moderate delta (0.585) position this for a 5% upside scenario (target $30.99), yielding a $1.99 payoff.
• OUST20250815C30 (Call): Strike $30, Expiry 8/15, IV 106.21%, Leverage 23.61%, Delta 0.474, Theta -0.255, Gamma 0.109, Turnover 43,830
– Strong liquidity (43,830 turnover) and high gamma (0.109) make this ideal for a breakout above $30.75, with a 5% upside payoff of $1.49.

Aggressive bulls may consider OUST20250815C29 into a bounce above $31, while OUST20250815C30 offers a safer entry for a sustained move toward the 52-week high of $32.95.

Backtest Ouster Stock Performance
Ouster Inc. (OUST) experienced a significant surge of 15% intraday, but its performance after this spike was mixed. While the stock continued to show strong momentum, with shares gaining 86% year-to-date and a recent 21% increase after Defense approval for its OS1 digital lidar, its valuation concerns emerged:1. Valuation Concerns: OUST's price-to-sales multiple reached 6.85, significantly higher than the industry average of 1.66, indicating that the market was valuing the company's sales at a premium. This high valuation could lead to increased volatility and potential downside if earnings do not match expectations.2. Market Position: Ouster's strong R&D investment and advanced proprietary FMCW LiDAR technology have solidified its market position, particularly in the lidar industry. However, the company's success is heavily dependent on maintaining this leadership and adapting to evolving regulatory requirements and new market trends, such as smart cities and logistics automation.3. Financial Performance: While OUST's financial performance is improving, with increased EPS and revenue estimates, the company's profitability is still subject to the success of its R&D initiatives and the ability to scale its operations without compromising margins.In conclusion, while Ouster's intraday surge was impressive, investors should closely monitor the company's performance against its high valuation and ensure that its R&D investments translate into sustainable growth and profitability.

Act Now: Ouster's Breakout Could Signal a New Bullish Phase
Ouster’s 14.61% intraday surge reflects a confluence of technical strength and options-driven buying pressure. While the stock remains below its 52-week high of $32.95, a close above $30.75 (intraday high) could validate a broader bullish trend. Traders should monitor the 200-day MA (currently empty) and RSI for overbought signals. With Apple (AAPL) down 0.06%, sector divergence adds intrigue. Watch for a breakout above $30.75 or a breakdown below $26.37 (intraday low) to confirm direction. Aggressive bulls may consider OUST20250815C29 for a short-term play.