Speculative players have been taking sides on DISH Network Corp (NASDAQ:DISH), TiVo Inc. (NASDAQ:TIVO), and CBS Corporation (NYSE:CBS), according to data from the major options exchanges. More specifically, the trio of TV connoisseurs has attracted the attention of option bulls. Here's a closer look at recent option activity on these three stocks.
DISH Network Corp (NASDAQ:DISH)
During the past five days, options traders on the International Securities Exchange (ISE) have bought to open 3,214 calls on DISH, compared to just 28 puts -- resulting in a lopsided call/put volume ratio of 114.79.
Broadening the perspective, DISH has racked up a 10-day call/put volume ratio of 7.11 on the ISE, Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Not only does this ratio indicate that traders have initiated far more bullish bets than bearish during the past two weeks, it also arrives in the 76th percentile of its annual range. This suggests options players are buying DISH calls over puts at an accelerated clip.
In the front-month series of options, the July 45 call has emerged as a fan favorite, with roughly 6,000 contracts added during the past two weeks. This strike is now home to peak call open interest of more than 7,150 contracts. From DISH's current perch at $42.55, it would take a rally of nearly 6% in order to topple the strike.
Outside of the options pits, the sentiment isn't so upbeat. Despite outperforming the broader S&P 500 Index (SPX) by 14 percentage points during the past three months, DISH boasts just five "buy" or better ratings from analysts, compared to six tepid "holds." Furthermore, the consensus 12-month price target of $42.94 is just a hair's breadth from DISH's current price. Should the stock extend its quest for new highs -- the equity peaked at $43.43 just yesterday -- a round of upgrades and/or price-target hikes could lure more buyers to the table.
TiVo Inc. (NASDAQ:TIVO)
In the same vein, TIVO has seen a recent pop in call buying. During the past five sessions, speculators on the CBOE have bought to open 1,705 calls, compared to 20 puts -- resulting in a call/put volume ratio of 85.25.
However, adding data from the ISE and PHLX into the mix, we find that TIVO puts have been more popular than usual. The stock's 10-day put/call volume ratio of 0.46 stands higher than 74% of all other readings of the past year. Echoing that, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.61 registers in the 78th percentile of its annual range, suggesting short-term options players are more put-heavy than usual right now.
Technically speaking, TIVO hasn't been much to write home about. Since touching a multi-year high of $14.10 in early June, the stock has shed almost 20% to linger near $11.33 -- mostly thanks to a bearish gap in the wake of a patent settlement with Google Inc (NASDAQ:GOOG). Nevertheless, analysts remain optimistic, with eight maintaining "strong buy" ratings, compared to three "holds" and not a single "sell."
CBS Corporation (NYSE:CBS)
Finally, CBS -- which has added close to 30% in 2013 -- has lured its fair share of option bulls. During the past five trading days, the stock has seen 1,978 calls change hands on the CBOE, compared to 30 puts, resulting in a bullishly skewed call/put ratio of 65.93. Similarly, the stock's 10-day call/put volume ratio on the ISE, CBOE, and PHLX rests at 16.32 -- just 15 percentage points from an annual optimistic peak.
Traders are apparently hoping for a move back atop the $50 mark, as the July 50 call has seen roughly 1,700 contracts added during the past two weeks. This strike is now home to 2,678 calls outstanding -- second only to the deeper out-of-the-money July 55 strike, which harbors almost 2,750 calls.
However, there's still plenty of room on the bullish bandwagon. The equity's SOIR of 0.77 registers in the 72nd percentile of its annual range, implying that near-term option traders are still more put-skewed than usual right now.
At last check, CBS is up 1.5% to wink at the $49.46 level.
The Case for Big Moves in IWM and QQQ
Featured Partners: AOL DailyFinance
© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: email@example.com
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.