Stocks quoted in this article:
The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest among weekly options traders this afternoon is Amazon.com, Inc. (NASDAQ:AMZN).
Amazon.com, Inc. is rallying with the broader equities market this afternoon, up 2% to $331.19 at last check. In fact, the equity took a sharp bounce off its 80-day moving average earlier -- a trendline that has served as resistance in recent weeks, but could now be switching to a more supportive role. In the equity's options pits, short-term contracts are in demand, per the stock's 30-day at-the-money implied volatility (IV), which has risen 1.5% to 38.2%. Diving deeper reveals a number of speculators are betting on extended gains for AMZN through this holiday-shortened week.
The most sought-after AMZN option today is the out-of-the-money weekly 7/3 335-strike call, where a healthy portion of the 5,943 contracts traded did so at the ask price, suggesting they were bought. IV is higher, and volume outstrips open interest, making it safe to assume new positions are being initiated. The calls are being purchased for a volume-weighted average price (VWAP) of $1.16, making breakeven at this Thursday's 1:00 p.m. ET close $336.16 (strike plus VWAP).
Also receiving a nod from option bulls is AMZN's in-the-money weekly 7/3 330-strike call, which is being bought to open for a VWAP of $2.80, making at-expiration breakeven $332.80. Profit for both sets of call buyers will accrue with each step above the respective breakeven marks the stock takes, while risk is limited to the initial premium paid, should AMZN finish south of the strikes at Thursday's close.
On the fundamental front, German-based Adidas said today it will begin selling its products through online marketplaces, such as AMZN and eBay Inc (NASDAQ:EBAY). Separately, Amazon.com, Inc. (NASDAQ:AMZN) unveiled a new dramatic thriller for its third pilot season.