Option Bulls Keep a Close Eye on American Express Company (AXP)

American Express Company (AXP) traders are buying to open front-month calls today

Digital Content Group
Feb 17, 2015 at 1:51 PM
facebook X logo linkedin


American Express Company (NYSE:AXP) touched an annual low of $77.12 earlier, but has since rebounded, last seen up 0.5% at $78.51. This morning's struggles may have been due to a price-target cut to $92 from $100 at Goldman Sachs yesterday, although the brokerage firm did reiterate its "buy" rating. The company was already coming off a week where it ended relationships with Costco Wholesale Corporation (NASDAQ:COST) and JetBlue Airways Corporation (NASDAQ:JBLU). Today, options traders are stepping up to the plate, with overall volume running at twice the typical intraday rate.

Some bullish traders are targeting the February 78 and 78.50 calls, as buy-to-open activity has taken place at each strike. These traders are hoping for AXP to buck the recent downtrend, and rally above the respective strikes before the close this Friday, when front-month options expire.

Judging from data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), many traders are hoping for AXP to rebound. The stock's 10-day call/put volume across those exchanges comes in at 2.57 -- higher than 94% of all other readings in the past year. In short, speculators have bought to open AXP calls over puts at an accelerated clip.

As was mentioned, American Express Company (NYSE:AXP) has struggled of late. Since touching a 2015 high of $93.94 on Jan. 2, the shares have lost over 16%. As such, bullish options traders may in luck. AXP's 14-day Relative Strength Index (RSI) is sitting at 29 -- in oversold territory -- suggesting a short-term bounce could be in the cards.

 

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