Coupa Software Inc (NASDAQ:COUP) is fresh off a record high of $255, up 3%, at last check. This new peak comes amid historically low implied volatility (IV), a combination that has bode well for the stock in the past. According to Schaeffer's Senior Quantitative Analyst Rocky White, there have been seven of these signals in the past five years when the stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th annual percentile or lower -- as is the case with COUP's current SVI of 57.4%, which sits in the 16th percentile of its 12-month range.
The data shows that one month after that signal, the software stock was up 8%. From its current perch at $251.95, that means another move of similar magnitude would put the stock around $272.11 -- in record-high territory. On the charts, COUP is enjoying recent support from its 30-day moving average, and now sports an impressive year-over-year gain of 107%.
Though short interest has started to fall off, down 14.7% during the last two reporting periods, the 8.48 million shares sold short still account for 13.7% of the stock's available float. In other words, it would take over four days to buy back these bearish bets, at COUP's average pace of trading.