Traders Set Sights on Alphabet Inc (GOOGL) Call Options

Alphabet Inc (NASDAQ:GOOGL) options traders have been buying calls at an accelerated rate

Jun 8, 2016 at 11:08 AM
facebook twitter linkedin


Alphabet Inc (NASDAQ:GOOGL) options volume is running high today, with calls trading at twice the expected intraday volume. The weekly 6/10 options series accounts for nine of the 10 most popular strikes, with what appears to be a mix of sell- and buy-to-open activity at the 735-, 737.5-, 740-, 742.50-, 745-, and 750-strike calls. Those selling the GOOGL calls are betting on the stock to hold below the strikes through the end of this week, when the contracts expire, while the buyers want GOOGL stock to top the strikes. 

This focus on GOOGL calls is nothing new, though. The stock's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 1.67, putting it in the 69th annual percentile. Moreover, this ratio has jumped by nearly 36% in the past month, meaning long calls have been gaining in popularity, in comparison to puts. In fact, going by open interest added, calls account for nine of the 10 most popular GOOGL options over the past two weeks. 

Elsewhere on the sentiment front, analysts are fully in GOOGL's bullish corner. Of the thirty-two brokerage firms covering the stock, only two don't recommend buying it, without a single "sell" opinion to be found. 

Luckily for all these bulls, Alphabet Inc (NASDAQ:GOOGL) stock is on the rise, with the tech company's annual shareholders meeting set to kickoff at 12:00 p.m. ET today. Specifically, GOOGL is up 0.8% at $736.97 though the stock once again topped out just beneath its closely watched 160-day moving average. Elsewhere, rumors surfaced yesterday that Alphabet was interested in buying this software stock

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.

What This Election Year Means for Stocks

Ipad with I voted sticker

  


 
Special Offers from Schaeffer's Trading Partners