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 twitter 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

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners