Traders Bet Against a Civeo Corporation (CVEO) Recovery

Civeo Corp (CVEO) call sellers are gambling on a long-term technical ceiling

Digital Content Group
Dec 31, 2014 at 12:47 PM
facebook X logo linkedin

Civeo Corp (NYSE:CVEO) is trying to come back from yesterday's analyst-exacerbated drubbing, when the shares lost more than half of their value. At last check, the stock was up 3.8% at $4.07 (but remains on the short-sale restricted list). Option traders are responding by targeting calls, with the contracts crossing at 23 times the intraday norm.

Digging deeper, CVEO's most active option is the January 2016 7.50-strike call, where nearly 9,000 contracts are on the tape. However, this isn't the work of option bulls; in fact, the option is seeing some sell-to-open activity, as traders wager on a long-term technical ceiling for the shares. Specifically, the call writers believe the stock will churn below $7.50 through January 2016 options expiration -- despite the fact it was above that level earlier this week.

While the aforementioned traders targeted a long-term strike, now appears to be an opportune time to sell premium on short-term contracts. CVEO's Schaeffer's Volatility Index (SVI) of 115% registers at the top of its annual range, suggesting the stock's front-month options are relatively expensive, from a volatility perspective.

More traditional option skeptics have also swarmed Civeo Corp (NYSE:CVEO) in recent months. During the last 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open more than two CVEO puts for every call.

Daily Chart of CVEO since May 2014


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