Webull Corporation (BULL) shares climbed more than 15% on Wednesday, recovering from recent lows as investors bought the dip and options activity turned increasingly bullish. The stock reached $6.12, up from its weekly low of $5.40, mirroring gains across the brokerage sector—Robinhood rose over 10% and Interactive Brokers added 5%.
Options Market Points to Bullish Sentiment
Data from the options market reveals a notable skew toward bullish positioning. Call volume reached 40,000 contracts with open interest of 31,235, while put volume stood at 10,240 with open interest of 6,455. This translates to a put/call open interest ratio of 0.21, indicating strong bullish conviction among options traders.
Fundamentals Show Growth Amid Losses
Despite the stock's 92% decline from its April 2021 peak, Webull's underlying business continues to expand. First-quarter revenue rose 36% year-over-year to $159.9 million, driven by a surge in equity notional volume to $261 billion from $128 billion in the same period last year. However, operating expenses increased 65%, pushing the net loss to over $21 million.
The company added 27.6 million new users in Q1, up from 24.1 million a year earlier, and funded accounts grew to 5.11 million. Analysts project revenue will climb 25% this year to $714 million, followed by another 25% increase to $894 million in 2025.
Regulatory Tailwinds and International Expansion
Webull's U.S. division stands to benefit from the SEC's decision to eliminate the pattern day trader (PDT) rule, which could boost activity among retail traders. The company has also secured licenses in Hong Kong, Canada, and the European Union, broadening its addressable market. For context on competitive pressures, see our analysis on Schwab's 2026 Crypto Trading Launch Pressures Robinhood Shares.
Technical Analysis: Falling Wedge Pattern
The daily chart shows BULL trading within a descending channel that resembles a falling wedge—a pattern often interpreted as a bullish reversal signal. The stock is attempting to break above its 50-day moving average. If successful, the next key resistance level is $7.53, the April high. Conversely, a drop below the $5.36 support level would invalidate the bullish outlook. Broader market dynamics, such as those affecting Intel Stock Surges 4% After BofA Upgrade, may also influence investor sentiment.
Outlook and Risks
While Webull's user growth and revenue trajectory are encouraging, the company's widening losses and the stock's steep decline highlight significant risks. The options market's bullish positioning suggests near-term optimism, but sustained profitability remains a key question. Investors should weigh the potential for a technical rebound against the fundamental challenges. For a broader view of market trends, see our coverage of Bitcoin Cash Reclaims $200 But Technicals Signal Further Downside Risk.
This article is for informational purposes only and does not constitute financial advice.
