Schaeffer's 43rd Anniversary Stock Picks in 2024

Ambarella, Inc. (AMBA) Traders Count On a Pullback from Highs

Ambarella Inc (NASDAQ:AMBA) hit yet another record high earlier today

Jun 10, 2015 at 11:54 AM
facebook X logo linkedin

Unlike sector peer GoPro Inc (NASDAQ:GPRO) -- which has spent the entire morning south of breakeven -- Ambarella Inc (NASDAQ:AMBA) has had a roller coaster session. The stock hit a fresh record high of $115.16 out of the gate before pulling back into the red, but was last seen a hair north of the flatline at $114.10. In options land, traders are rolling the dice on -- or protecting against -- a move lower by the end of the week.

At last check, puts are changing hands at almost three times the usual intraday rate. Most active is AMBA's weekly 6/12 110-strike put, where buy-to-open activity is detected. In other words, these put buyers think the shares will breach $110 by this Friday's close, when the weekly series expires.

This preference for short-term puts isn't unique. In fact, AMBA's Schaeffer's put/call open interest ratio (SOIR) of 1.49 indicates put open interest outstrips call open interest among contracts set to expire in the next three months. What's more, this reading ranks in the 95th annual percentile.

In a similar vein, traders have been buying to open Ambarella Inc (NASDAQ:AMBA) puts over calls at an accelerated clip of late. The stock's 10-day put/call volume ratio of 0.90 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is higher than 81% of comparable readings from the past year. However, considering AMBA has more than doubled over the past year, it's possible that the recent affinity for long puts -- especially at out-of-the-money strikes -- could be attributable to shareholders seeking an options hedge.


A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!