Most Active Weekly Options: Freeport-McMoRan Inc and SolarCity Corp

Freeport-McMoRan Inc (NYSE:FCX) and SolarCity Corp (NASDAQ:SCTY) are seeing a rare surge in call volume

May 23, 2016 at 11:04 AM
facebook X logo linkedin


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 mining firm Freeport-McMoRan Inc (NYSE:FCX) and alternative energy stock SolarCity Corp (NASDAQ:SCTY).

Most Active Options May 23

Put players have set their sights on FCX in recent months, per the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.02 -- in the 92nd annual percentile. What's more, while FCX total open interest of roughly 2.5 million options is docked at a 52-week peak, puts outweigh calls by a nearly 2-to-1 margin.

Today, however, calls have the early lead over puts, with the former trading at nearly two times the latter. While most of the action has centered on the June 12 call, the weekly 5/27 series is hot, accounting for six of FCX's 10 most active options. Put players appear to be initiating short positions at the weekly 5/27 10 strike, while call players look to be purchasing new positions at the weekly 5/27 11 strike.

On the charts, FCX has more than tripled since hitting a 15-year low of $3.52 in late January. More recently, though, the shares have drifted lower following a swift rejection near the $14 mark -- last seen down 0.1% at $11.09, after Freeport-McMoRan Inc's oil-and-gas division suspended plans to go public.

Puts have been popular on SCTY, too. At the ISE, CBOE, and PHLX, for instance, the stock's 10-day put/call volume ratio of 1.71 rests higher than 78% of all comparable readings taken in the past year. Echoing this is SCTY's Schaeffer's put/call open interest ratio (SOIR) of 1.77 -- in the 76th percentile of its annual range. In other words, short-term speculators are more put-heavy than usual toward the security.

This morning, though, calls are crossing at 1.3 times the average intraday clip, while puts are trading below the expected intraday amount. Although absolute volume is still relatively light in early trading, it looks like one option bull is rolling her weekly 5/27 22-strike call up to the 22.50 strike, expecting SCTY to rally through week's end -- when the series expires.

At last check, SCTY was up 5.7% at $23.21, but today's positive price action should be taken with a grain of salt amid the stock's longer-term trajectory. Specifically, SolarCity Corp has shed 55% year-to-date, and came within a chip-shot of notching a new multi-year low following its post-earnings bear gap earlier this month.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox.

 

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