Most Active Weekly Options: Ambarella, Inc. and Microsoft Corporation

Short-term options traders are targeting Ambarella Inc (NASDAQ:AMBA) and Microsoft Corporation (NASDAQ:MSFT)

by Alex Eppstein

Published on Jun 26, 2015 at 11:18 AM
Updated on Jun 26, 2015 at 11:18 AM

The 20 stocks listed in the table below have attracted the highest total weekly options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. Two names of notable interest are semiconductor specialist Ambarella Inc (NASDAQ:AMBA) and software powerhouse Microsoft Corporation (NASDAQ:MSFT).

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AMBA has been a force on the charts this years -- with the exception of a recent correction -- more than doubling in value to trade at $104.85. What's more, the shares have outperformed the broader S&P 500 Index (SPX) by almost 39 percentage points over the past three months.

Analysts have begun to recognize AMBA's momentum, with the stock recently receiving a price-target hike, and being flagged as "too inexpensive to ignore" by one prominent pundit. However, options traders have rarely been more skeptical, buying to open puts at an accelerated clip in recent weeks. Specifically, AMBA's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.05 ranks in the 86th annual percentile. A capitulation among these doubters could power the shares even higher.

In today's trading, weekly options are again popular -- though it's calls that seem to have a rare advantage. Bulls may be buying to open Ambarella Inc's (NASDAQ:AMBA) weekly 6/26 106-strike call, while bears look like they're placing fresh bets at the weekly 7/2 100-strike put.
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Meanwhile, put buying has also been popular on MSFT in recent months, per data from the ISE, CBOE, and PHLX. The security's 50-day put/call volume ratio of 0.79 sits above 87% of comparable readings from the past year. Today, puts are crossing at double the typical intraday clip, and almost two times the rate of calls.

This, despite the fact Microsoft Corporation (NASDAQ:MSFT) has surged over 14% since hitting an early April annual low of $40.12, and now trades at $45.75. In addition, the shares appear to have found a foothold in the form of their 40-week moving average, currently located at $45.53. Should the stock bounce from this trendline, an unwinding among bearish bettors could act as an upward catalyst.


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