Options Volume Accelerates on Molycorp, Inc. (MCP)

Molycorp Inc (MCP) is running into resistance at its 80-day trendline

Digital Content Group
Feb 4, 2015 at 1:52 PM
facebook X logo linkedin


Molycorp Inc (NYSE:MCP) options are flying off the shelves this afternoon, amid the rare earths stock's 1.5% dip. By the numbers, calls have a slight advantage over puts -- 25,000 contracts to 24,000 -- and are crossing at 10 times the expected rate for this point in the day.

Looking more closely, MCP is seeing potential buy-to-open activity at a number of strikes, including the out-of-the-money June 1 call and March 0.50 put. The call buyers expect the shares to muscle atop the $1 mark by June options expiration. However, in order to do so, the stock will needle to hurdle its descending 80-day moving average -- which rejected an advance earlier today -- currently resting at $0.95. By contrast, the put traders anticipate MCP will settle below $0.50 by the close on Friday, March 20, when back-month options expire.

From a wider vantage point, long calls have held a decisive advantage over long puts in recent weeks. MCP's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 13.67 -- above 88% of similar readings from the previous 12 months. However, some of these bets may have been initiated by short sellers hedging -- considering nearly 28% of the equity's float is sold short, which would take more than three weeks to buy back, at typical trading levels.

On the charts, Molycorp Inc (NYSE:MCP) has put on a disastrous performance over the last 52 weeks. Specifically, the shares are down 83% year-over-year to hover around $0.79.

Daily Chart of MCP since February 2014 with 80-Day Moving Average
Chart courtesy of StockCharts.com
 

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