Most Active Weekly Options: Netflix, Inc. and Sunedison Inc

Netflix, Inc. (NASDAQ:NFLX) and Sunedison Inc (NYSE:SUNE) have been the target of weekly options traders

by Karee Venema

Published on Apr 7, 2016 at 2:40 PM
Updated on Jun 24, 2020 at 10:16 AM

The 20 stocks listed in the table below have attracted the highest total weekly options volume during the past 10 trading days. Stocks 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 notable names are streaming service Netflix, Inc. (NASDAQ:NFLX) and solar power stock Sunedison Inc (NYSE:SUNE).

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Call buying has continued to be popular in NFLX's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 1.69 ranks in the 97th percentile of its annual range. In other words, calls have been bought to open over puts at a faster-than-usual clip in recent weeks.

Today, call options have a pronounced lead over put options, with 54,000 of the former and 33,000 of the latter on the tape at last check, and the resultant put/call volume ratio of 0.62 resting in the 5th annual percentile. NFLX's weekly 4/8 calls are hot, accounting for eight of the stock's 10 most active options -- with new positions apparently being initiated at the 102, 103, 104, 105, 106, and 107, strikes.

Technically, NFLX has put an outstanding performance over the long term, rallying more than 65% year-over-year. More recently, a 30% rally off its early February lows has brought NFLX face-to-face with its 200-day moving average. This formerly uplifting trendline appears to now be serving as resistance, with Netflix, Inc. last seen lingering just south of here, at $104.22.

Put buying has picked up speed on SUNE is recent months, amid the stock's epic collapse. At the ISE, CBOE, and PHLX, for instance, the stock's 50-day put/call volume ratio of 0.63 sits higher than 91% of all comparable readings taken in the past year. Meanwhile, SUNE's Schaeffer's put/call open interest ratio (SOIR) of 1.01 rests just 6 percentage points from a 52-week peak, indicating short-term speculators are more put-heavy than usual.

In another low-volume session for the shares, though, it's calls that have the upper hand over puts by a more than 2-to-1 margin. Most active is SUNE's weekly 4/8 0.50-strike call. It looks like there's a mix of buying and selling occurring here, but with implied volatility up across the board and open interest enough to cover volume, it's not easy to tell whether the options are being opened or closed.

As touched upon, SUNE has been in a tailspin on the charts -- as bankruptcy buzz builds -- down more than 92% year-to-date. Today, however, the shares of Sunedison Inc (NYSE:SUNE) are up 7.7% at $0.40, but given SUNE's withstanding technical and fundamental troubles, this is more than likely a dead cat bounce.

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