Bidding Buzz Electrifies NEE Options Bulls

Call traders are chiming in at a higher rate today

Deputy Editor
Nov 10, 2020 at 11:12 AM
facebook X logo linkedin


The shares of electric power stock Nextera Energy Inc (NYSE:NEE) are up 2.7% at $77.53 at last check, on reports of the company's $15 billion all-stock bid for utility company Evergy (EVRG). Evergy reportedly rejected the bid, however, Elliot Management -- one of its largest investors -- is urging them to immediately reconsider the transaction. 

Yesterday, the stock soared past pressure at the $76 level to a new record high, trading up at $83.34 before dropping lower by the close. Today, NEE is making another run at this all-time high, and sports a 28% year-to-date lead. 

The brokerage bunch appears confident on the equity, with nine of the 13 analysts in coverage at a "strong buy" rating, and the remaining four a "hold." Meanwhile, the 12-month consensus price target of $74.46 is now a slight discount to current levels. 

Options bulls are surrounding NEE in droves today. So far, 5,213 calls have crossed the tape -- two times what's typically seen at this point with call volume pacing for the 99th percentile of its annual range. These premiums are attractively priced at the moment as well, per NEE's Schaeffer's Volatility Index (SVI) of 28%, which sits higher than just 17% of readings from the past 12 months. This implies that options players are pricing in relatively low volatility expectations at the moment. 

 

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