Verizon Stock Shifts Higher on Buyback Reveal

Near-term call traders have preferred the equity

Managing Editor
Feb 7, 2020 at 12:29 PM
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Shares of Verizon Communications Inc. (NYSE:VZ) are moving 1% higher to trade at $60.01 this afternoon, enjoying a lift after the mobile carrier announced a new repurchase program for up to 100 million shares of its common stock. With today's gains, VZ has now run into resistance at its 100-day moving average, but remains just shy of its year-to-date breakeven mark. Longer-term, the equity has added 12% over the past 12 months.

Digging deeper, Verizon stock sports a Schaeffer's put/call open interest ratio (SOIR) of 0.54. This ratio sits in the 16th annual percentile, meaning short-term traders have rarely been more call-biased during the past 12 months. 

Lastly, options premiums look affordable on VZ. The security's Schaeffer's Volatility Index (SVI) of 14% sits in the 14th percentile of its annual range. This means short-term options are pricing in fairly low volatility expectations right now.

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