software stocks Samsara Inc (NYSE:IOT) has not been able to take advantage of the enormous 19.5% post-earnings bullish gap enjoyed at the beginning of March. The stock is down 10% in 2026, but could be poised to dig deeper into that deficit, after flashing a historically bullish options trading signal.
Samsara’s 10-day bid-sell ratio just reached the 90th percentile and surpassed 1.0. In fact, the ratio of 7.62 (highlighting the put bias) now sits in the 100th percentile of its annual range. According to Rocky White, senior quantitative analyst at Schaeffer, in the last three years that has happened six other times for the utility name. The stock averaged an 8.5% return 21 days later with a 67% success rate.
From its current position, a move of this magnitude would see IOT retest its 126-day moving average, a trendline that diverted its post-March earnings pop. Another positive sign for the contrarians is the double bottom formed in the last two months.
A short squeeze could keep the wind in the stock’s favor. Short interest is down 8.6% over the two most recent reporting periods, however, the 29.44 million shares sold short still represent 8.3% of IOT’s total available.
Options Are the Way to Go, Depending on Stocks Schaeffer Volatility Scorecard (SVS) of 80 out of 100, indicating that Samsara has consistently achieved higher volatility expectations than its options have priced in.