Another Big Day Brings Out SolarCity Corporation (SCTY) Bulls

SolarCity Corp (SCTY) calls have been bought to open over puts at an extreme pace of late

Digital Content Group
Mar 31, 2015 at 2:48 PM
facebook X logo linkedin


Once again, SolarCity Corp (NASDAQ:SCTY) is making a solid move higher. After rallying yesterday on rumors of a potential partnership with Tesla Motors Inc (NASDAQ:TSLA), the alternative energy stock is up another 2.6% at $51.90. As such, options activity is ramping up.

Calls, in particular, are popular -- crossing at nearly triple the usual intraday pace. Short-term traders are targeting the weekly 4/2 52.50 strike, where data points to new positions being purchased. By buying to open these out-of-the-money calls, speculators anticipate SCTY will hurdle $52.50 by this Thursday's close, when the weekly series ceases trading.

Taking a step back, call buyers have been busy of late in SCTY's options pits. The equity's 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at an annual high of 5.60.

The brokerage crowd is extremely optimistic, too. Seven of eight analysts have handed SCTY a "buy" or better rating, compared to one "hold" and not a single "sell." Even more bullish is the stock's consensus 12-month price target of $84.50, which stands in territory not charted for roughly one year -- and represents a nearly 63% premium to current trading levels.

Technically speaking, though, SolarCity Corp (NASDAQ:SCTY) hasn't been anything to write home about. The shares are down more than 3% year-to-date, and have underperformed the broader S&P 500 Index (SPX) over the past couple months.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI