Q2 STOCKS TO BUY

Traders Pile On as Verizon Communications Inc. (VZ) Cleans House

Verizon Communications Inc. (VZ) is planning to sell $10 billion in assets

Feb 3, 2015 at 2:17 PM
facebook X logo linkedin


Verizon Communications Inc. (NYSE:VZ) is helping boost the Dow today -- with the shares up 1.8% at $47.85 -- as traders react positively to news the telecommunications giant is reportedly preparing to rid itself of roughly $10 billion in assets. In the options pits, total volume is running at 1.7 times what's typically seen at this point in the day, with traders seemingly split on the equity's short-term trajectory.

Receiving the most attention is VZ's February 48 put, with all signs suggesting buy-to-open activity. By purchasing these now at-the-money puts, speculators expect VZ to be sitting south of the strike at the close on Friday, Feb. 20 -- when front-month options expire. Meanwhile, option bulls are initiating new long positions at the February 49.50 call, as they roll the dice on a bigger bounce over the next several weeks.

Expanding the sentiment scope reveals options traders have shown a preference for bearish bets over bullish in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), VZ's 50-day put/call volume ratio of 0.57 ranks higher than 64% of similar readings taken over the past 52 weeks.

Technically speaking, Verizon Communications Inc. (NYSE:VZ) has failed to make any notable moves in 2015, and is sitting roughly 2% above where it started the year. However, today's positive price action has the shares on pace to settle north of their 50-day moving average for the first time since Dec. 1.

Daily Chart of VZ Since November 2014 With 50-Day Moving Average
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter