EARN25

Option Bears Won't Quit on SolarCity Corporation (SCTY)

SolarCity Corp (SCTY) traders are banking on end-of-week downside

Digital Content Group
Jan 21, 2015 at 10:34 AM
facebook X logo linkedin


SolarCity Corp (NASDAQ:SCTY) puts were once again popular yesterday. Specifically, 12,000 contracts changed hands -- more than double the expected daily amount, and nearly triple the number of calls traded.

SCTY's most popular option by a mile was the weekly 1/23 48-strike put, which saw buy-to-open activity. The buyers are banking on the shares to settle below $48 at this Friday's close, when the weekly series expires.

As alluded to earlier, put buying has been a trend in SCTY's options pits. In fact, the stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at an annual high of 2.12. In similar fashion, SCTY's Schaeffer's put/call open interest ratio (SOIR) of 1.11 ranks in the 100th percentile of its 52-week range.

It's no wonder skepticism is peaking on SolarCity Corp (NASDAQ:SCTY). Despite being up 2.1% today to trade at $48.79, the shares have surrendered nearly 35% of their value on a year-over-year basis.

Daily Chart of SCTY since January 2014

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!