Put Buying Picks Up as SolarCity Corporation (SCTY) Dives

SolarCity Corp (SCTY) traders anticipate a short-term move lower

Digital Content Group
Jan 6, 2015 at 1:34 PM
facebook X logo linkedin

SolarCity Corp (NASDAQ:SCTY) has dropped 4.6% to trade at $47.78, pressured by broad-market headwinds. This is more of the same for a stock that's pared about 46% of its value since touching a record high of $88.35 in late February. Accordingly, options traders have been upping the bearish ante in recent weeks.

During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SCTY has tallied a put/call volume ratio of 0.73 -- higher than more than three-quarters of similar readings from the last year. In like manner, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.91 ranks in the 87th annual percentile -- suggesting short-term speculators have rarely been so put-skewed.

Today, puts are crossing at a 16% mark-up to the normal intraday rate. Also, according to SCTY's 30-day at-the-money implied volatility -- which is up 3.1% to 56.6% -- short-term contracts have captured the attention of traders.

In fact, digging deeper, we discover the January 2015 48-strike put is by far the stock's most active option. From the looks of it, bearish bettors are initiating fresh long positions, expecting SolarCity Corp (NASDAQ:SCTY) to sustain its downward momentum through next Friday's close, when front-month options expire.

Daily Chart of SCTY since February 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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI