Sinking Peabody Energy Corporation (BTU) Sees a Barrage of Put Buying

Peabody Energy Corporation (BTU) puts are trading at 10 times the average intraday pace

Mar 4, 2015 at 3:03 PM
facebook X logo linkedin


It's a bad day for energy names, and Peabody Energy Corporation (NYSE:BTU) is no exception. The stock is off 7.1% -- deepening its year-over-year deficit to 61% -- to trade at $6.72. Options traders are responding in kind, and are scooping puts at 10 times what's typically seen at this point in the day.

Put players, specifically, have set their sights on BTU's weekly 3/13 and June series of options. In the former, buy-to-open activity has been detected at the 6.50 and 7 strikes, while it appears new positions are being purchased at the 4 and 5 strikes in the latter. By initiating the puts, speculators expect BTU to settle south of the strike prices at the respective expiration dates.

Today's pop in put volume just echoes the withstanding trend witnessed in the stock's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, the equity's 10-day put/call volume ratio of 1.03 rests higher than 79% of similar readings taken in the past year.

Echoing this put-skewed bias is BTU's Schaeffer's put/call open interest ratio (SOIR) of 1.03, which ranks in the 92nd annual percentile. In other words, short-term speculators have been more put-heavy toward the security just 8% of the time within the past year.

Outside of the options pits, however, there is still plenty of room on Peabody Energy Corporation's (NYSE:BTU) bearish bandwagon. Among covering analysts, 44% maintain a "buy" or better rating, while the average 12-month price target of $9.85 stands at a 46.6% premium to current trading levels. Going forward, another round of downwardly revised analyst notes could create additional headwinds for the shares.

 

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