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Option Clips: Williams-Sonoma, Sky-mobi Ltd (ADR), and Ford Motor

Reviewing notable options activity on Williams-Sonoma, Inc., Sky-mobi Ltd (ADR), and Ford Motor Company

by 3/13/2014 1:35 PM
Stocks quoted in this article:

Two equities generating buzz on StockTwits today are home furnishings concern Williams-Sonoma, Inc. (NYSE:WSM) and Chinese app issue Sky-mobi Ltd (ADR) (NASDAQ:MOBI). Meanwhile, automaker Ford Motor Company (NYSE:F) has also been active in the options pits. Here's a look at how traders have been aligning their speculative bets today.

  • Williams-Sonoma, Inc. (NYSE:WSM) is 11.4% higher at $65.69, after touching a record peak of $65.86 earlier in the session. Last night, the company reported stronger-than-expected fourth-quarter earnings, offered solid full-year guidance, and upped its quarterly dividend by 2 cents to 33 cents per share. As a result, overall options volume is running at nearly 11 times the norm, with calls trading at 13 times the average rate. Upon closer inspection, speculators are gambling on higher highs for WSM, buying to open the March 65 call, where close to 1,100 contracts have changed hands. However, the security's short-term options are relatively expensive right now, as the stock's Schaeffer's Volatility Index (SVI) rests at an annual acme of 48%.

  • Sky-mobi Ltd (ADR) (NASDAQ:MOBI) is flirting with a 1.1% loss at $9.23, after topping out at $10.45 -- just a stone's throw from a near-three-year high -- in morning trading. The equity has added roughly 28% so far in March, following projections in the press of year-over-year smartphone revenue growth of as much as 100% for the firm. In today's trading, MOBI has seen more than 6,400 calls cross the tape -- 10 times the norm, and nearly 11 times the number of puts exchanged. Almost half of the action has transpired at the March 10 call, which has seen a mix of buying and selling activity.

  • Finally, Ford Motor Company (NYSE:F) is 1.2% lower at $15.22, bringing its week-to-date deficit to 2.6%. Nevertheless, options traders remain hopeful, with more than 10,600 contracts traded at the June 15 call today. Volume has surpassed open interest at the strike, and nearly three-quarters of the calls traded on the ask side, hinting at newly bought bullish bets. By purchasing the calls to open, the buyers expect F to churn north of $15 through the next few months. However, the stock is no stranger to optimistic attention in the options arena, as its Schaeffer's put/call open interest ratio (SOIR) of 0.52 registers in the 20th percentile of its annual range. In other words, short-term options players are more call-biased than usual at the moment.

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