Jefferies Dishes Out Bear Note on Outperforming Oil Stock

OAS shares are pulling back today as a result

Managing Editor
Jun 11, 2018 at 9:49 AM
facebook X logo linkedin


Oil-and-gas concern Oasis Petroleum Inc. (NYSE:OAS) is down 1.9% at $12.61 in early trading, after Jefferies downgraded the stock to "hold" from "buy." The note is somewhat surprising, since Oasis stock has been a recent outperformer, up 37.5% year-over-year coming into today, with the 20-day moving average providing support in recent weeks.

In the options pits, put buying has been more popular than normal. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows OAS with a 10-day put/call volume ratio of 0.55, ranking in the 90th annual percentile. This lofty percentile shows that puts have been purchased over calls at a faster-than-usual clip during the past two weeks. 

It's a prime time to purchase premium on OAS options, too. The equity currently sports a Schaeffer's Volatility Index (SVI) of 47%, which ranks in the 15th percentile of its annual range. This suggests that near-term options are pricing in relatively low volatility expectations at the moment, which could help maximize the benefit of leverage for premium buyers.

Meanwhile, short interest rose 11.4% during the most recent reporting period, and now represents over 18% of the stock's total available float. At Oasis Petroleum stock's average daily trading volume, it would take about four days for shorts to buy back their bearish bets.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI