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 today is Twitter Inc (NYSE:TWTR), with options traders gambling on gains.
Twitter Inc is up 1.4% this afternoon to trade at $52.18, as the shares attempt to recover from their year-to-date deficit. In the options pits, short-term contracts are in demand, per the equity's 30-day at-the-money implied volatility (IV), which is up 7.5% to 49.4%. Along those lines, one group of speculators is banking on continued upside for the stock, targeting the in-the-money October 50 call.
Nearly 11,500 contracts are on the tape at this strike. With 85% crossing at the ask price, and IV trending higher, it appears the calls are seeing buy-to-open activity. This theory is partially confirmed by data from the International Securities Exchange (ISE).
In a nutshell, the call buyers are anticipating Twitter Inc (NYSE:TWTR) will sustain its positive momentum, and finish north of the round-number half-century mark at the close on Friday, Oct. 17, when front-month options expire. Delta on the contract was last seen at 0.68, meaning the options market is giving the contract a 68% chance of being in the money at expiration.