Stocks quoted in this article:
The 20 stocks listed in the table below are the names that have attracted the highest weekly options volume during the past 10 trading days. Those 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 today is Facebook Inc (NASDAQ:FB), where call volume nearly triples put volume.
Facebook Inc has gained a modest 0.6% this afternoon to trade at $74.18, and options traders have set their sights on additional upside through the end of the week. Specifically, the social networking stock's most active option is the weekly 11/28 75-strike call, where 8,261 contracts are on the tape.
The majority of the contracts have changed hands at the ask price, implied volatility (IV) has edged higher -- even though FB's 30-day at-the-money IV touched a 52-week low earlier -- and volume outstrips open interest, collectively implying buy-to-open activity. In other words, the buyers anticipate the shares will topple $75 by Friday's close, when the series expires.
While the underlying need only gain about 1% to hit the aforementioned strike, Facebook Inc (NASDAQ:FB) could face a potentially rough road ahead. The $75 area has acted as resistance this month, reinforced by the more than 7,500 contracts in call open interest at the corresponding strike in the 11/28 series. What's more, the shares are now staring up at their 100-day moving average (at $74.47), which recently served as support, but could now reverse roles to limit additional upside.