Most Active Weekly Options: Baidu Inc (ADR) (BIDU)

Call traders are split on Baidu Inc's (ADR) short-term trajectory


Published on Nov 12, 2014 at 10:51 AM
Updated on Apr 20, 2015 at 5:32 PM

The 20 stocks listed in the table below are the names that have attracted the highest weekly options volume during the past 10 trading days. Those 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 Baidu Inc (ADR) (NASDAQ:BIDU), which has garnered attention from short-term call traders.

Most Active Weekly Options Table

Baidu Inc's (ADR) 30-day at-the-money implied volatility (IV) is up 1.8% this morning at 30%, signaling elevated demand for short-term options. Taking a closer look, each of the stock's 10 most active strikes expire either this Friday evening or next.

Leading the way is the weekly 11/14 255-strike call, where 670 contracts are on the tape. The majority have crossed at the bid price, IV is rising, and volume outstrips open interest, suggesting sell-to-open activity. In other words, these call writers anticipate BIDU will remain below $255 through the close of the week, when the weekly options expire.

On the flip side, the weekly 11/14 250-strike call is also seeing notable attention. However, it appears these contracts are primarily being bought to open, with the buyers banking on a move north of the quarter-millennium mark by week's end.

Technically speaking, Baidu Inc (ADR) (NASDAQ:BIDU) has spent time today on both sides of $250. Shortly after the open, the shares touched a record high of $251.65, but at last check, they were down 0.2% at $249.80. Longer term, the stock has gained more than 40% year-to-date, helped by a recent bounce off of its 20-week moving average.

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