Schaeffer's Trading Floor Blog

Options Check-Up: Intel Corporation, Starbucks Corporation, and SodaStream International Ltd

Analyzing recent option activity for INTC, SBUX, and SODA

by 2/25/2014 5:29 PM
Stocks quoted in this article:

Among the stocks attracting attention from options traders lately are technology expert Intel Corporation (NASDAQ:INTC), coffee king Starbucks Corporation (NASDAQ:SBUX), and home beverage concern SodaStream International Ltd (NASDAQ:SODA). Below, we'll break down how options buyers are positioning themselves, and how much speculators are willing to pay for their bets on INTC, SBUX, and SODA.

  • Though INTC has shed 5.1% since the start of 2014 to trade at $24.62, its options traders have been more bullish than usual of late. In fact, during the past 10 trading sessions, the equity has racked up an International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.17, which ranks higher than 88% of comparable readings from the past year. In other words, calls have been bought to open over puts at an accelerated pace recently. Now is an opportune time to pick up short-term options on Intel Corporation, considering the stock's Schaeffer's Volatility Index (SVI) of 16% ranks 2 percentage points from a 12-month low. This means short-term options prices are nearing annual-low levels, from a volatility standpoint.

  • SBUX option traders, on the other hand, have bought to open puts over calls at an annual-high pace during the past two weeks. This is evidenced by the fact that the stock's 10-day ISE/CBOE/PHLX put/call volume ratio ranks higher than all comparable readings from the past 12 months. This makes sense, considering Starbucks Corporation has lost about 10% year-to-date to trade at $70.55. Plus, the stock's SVI of 19% ranks in the 17th annual percentile, indicating front-month options are relatively inexpensive right now.

  • As SODA gears up for its turn on the earnings front tomorrow morning, options players have upped the bearish ante on the stock. The equity's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.92 ranks higher than three-fourths of similar readings from the past 12 months, highlighting the recent faster-than-usual pace of put buying, relative to call buying. Heading into tomorrow's quarterly event, short-term options on SodaStream International Ltd are very expensive, relatively speaking, as the stock's SVI of 77% ranks in the 91st percentile of its annual range. Meanwhile, on the charts, SODA shares have suffered significantly, plunging 21.3% year-to-date to trade at $39.08.

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