Amazon Partnership Puts Travelers Stock In Focus

Options traders have shifted toward calls from puts on TRV

Oct 10, 2018 at 9:27 AM
facebook X logo linkedin

Travelers Companies Inc (NYSE:TRV) is grabbing headlines thanks to news of a partnership with (AMZN) that will allow the insurance giant to sell home security products to customers on the e-commerce site. TRV shares closed Tuesday's session at $131.59, right near the 320-day moving average and well below their January peak of $150.55. Moreover, the $134-$135 region blocked a recent breakout attempt, an area home to a notable April bear gap.

In the options pits, traders have started to target calls over puts, though volume overall has been light in recent weeks. The 10-day call/put volume ratio is 5.57 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 88th annual percentile. Compare this to the 50-day call/put volume of just 0.29, and clearly there's been a shift in sentiment from options traders.

Most analysts are already skeptical of Travelers stock. There are 16 brokerage firms in coverage, and 10 of them have "hold" or worse recommendations. Meanwhile, the average 12-month price target stands up at $138.29, near where the shares were trading before the aforementioned April bear gap.



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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI