Most Active Weekly Options: Tesla Motors Inc and Micron Technology, Inc.

Call buyers have set their sights on Tesla Motors Inc (NASDAQ:TSLA) and Micron Technology, Inc. (NASDAQ:MU)

Karee Venema
May 31, 2016 at 1:45 PM
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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 of interest are electric car concern Tesla Motors Inc (NASDAQ:TSLA) and semiconductor stock Micron Technology, Inc. (NASDAQ:MU).

Most Active Weekly Options May 31

Call buyers have been more active than usual in TSLA's options pits, per the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.09 -- in the 61st annual percentile. What's more, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.80 rests lower than 91% of all comparable readings taken in the past year, meaning short-term speculators are more call-heavy than usual.

Today, TSLA's weekly 6/3 series -- which expires at this Friday's close -- is hot, accounting for each of the equity's 10 most active options. Receiving the most attention is the weekly 6/3 225-strike call, where it looks like a mix of buy- and sell-to-open activity is occurring.

Those purchasing the calls to open expect Tesla Motors Inc to rally north of the strike by week's end, a time frame that includes tonight's annual shareholders meeting. Conversely, those selling to open the calls are betting on $225 to serve as a short-term ceiling. Earlier, the stock hit an intraday peak of $224.75, but was last seen down 0.2% at $222.60.

Options traders have shown a preference for long calls over puts in MU's options pits in recent weeks. At the ISE, CBOE, and PHLX, for instance, the stock's top-heavy 10-day call/put volume ratio of 3.15 ranks higher than 67% of all other similar readings taken in the past 12 months.

Calls are trading at an accelerated clip today, too, with the options crossing at three times the average intraday rate. What's more, MU's intraday put/call volume ratio of 0.15 rests in just the 3rd percentile of its annual range.

While most of the action appears to be the result of an October 12 and 13 call spread, shorter-term options traders look to be purchasing new positions at the weekly 6/3 12.50-strike call. If this is the case, traders expect MU to extend its recent breakout through Friday's close. At last check, the stock was up 4.1% at $12.81 -- enjoying a notable spot on the Nasdaq Composite (COMP) -- after Baird upgraded Micron Technology, Inc. to "outperform" and raised its price target to $18 from $12, citing increased demand for DRAM chips.

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