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. Three names of notable interest this afternoon are General Electric Company (NYSE:GE), Ford Motor Company (NYSE:F), and Facebook Inc (NASDAQ:FB).
Following this morning's stronger-than-expected earnings report, Ford Motor Company rallied to a fresh two-year peak today. Not surprisingly, call volume has soared to north of four times the average intraday pace. Calls are also popular in Facebook Inc's options pits, and are outpacing puts by a margin of almost 3-to-1. FB's call-skewed session comes on the back of a price-target hike at JMP Securities earlier. Meanwhile, here's a closer look at how one optimistic options player is betting big on General Electric Company.
General Electric Company is continuing to climb higher after reporting a profit beat last Friday, with the shares up nearly 5% in that time to trade at $25.90. One speculator in today's session is eyeing a steeper rise to levels not seen since September 2008. Specifically, one block of 10,000 January 2014 27-strike calls changed hands shortly before noon on the NASDAQ OMX PHLX (PHLX) at the ask price of $0.37. Implied volatility ticked higher at the trade, suggesting new bullish positions are being initiated.
As mentioned, GE has not crossed the $27 threshold in more than six years. As such, delta for the call is currently docked at 0.30, or 30%, indicating a less than 1-in-3 chance the position will land in the money at expiration. Should the stock fail to accomplish this feat, the most today's call buyer stands to forfeit is the initial cash outlay. Given the magnitude of the trade, this equates to $370,000, which is the number of contracts times the premium paid times 100 General Electric Company (NYSE:GE) shares per contract.