A price trend and its strength can be identified with the use of key simple moving averages. The key simple moving averages are the 50-day, 100-day, and 200-day simple moving averages. What are these averages doing in Whole Foods? The stock is currently trading below all of its key moving averages. What does this signal? Whole Foods is still in a pullback and consolidation mode so it may be a little time before it is good to go once again.
A simple way to gain perspective into investor sentiment is through the use of the options market. More specifically, taking a look at the implied volatility and implied volatility skew levels of Whole Foods options may help determine if investors are bullish, neutral, or bearish. The implied volatility of Whole Foods options is at 15.67 percent today which coincides with a zero percentile over the last 30 trading days and zero percentile over the last 90 trading days. What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, as compared to the last 30 and 90 trading days.
The implied volatility skew of April and May put and call options is at about average. So as of today, there is an average demand from call and put buyers or average supply of call and put sellers, all neutral over the next two months. Investors are buying a minimal amount of call and put option contracts and are leaning neutral over the next two months.