Eleventh-Hour Options Traders Swarm Alphabet Inc (GOOGL)

Alphabet Inc (NASDAQ:GOOGL) is on pace to close below its 50-week moving average for the first time in nearly a year

Jun 17, 2016 at 1:41 PM
facebook X logo linkedin

Tech heavyweight Alphabet Inc (NASDAQ:GOOGL) ​hasn't exactly lit it up this year on the charts. The shares have lost 9% in 2016, and have been pressured lower in recent months by their 160-day moving average. What's more, GOOGL is set to close below its 50-week moving average for the first time in almost a year, after dropping 2.3% today at $707.29. Pressuring the shares are reports that analysts at Citi have identified a slowdown in ad buying, while sharp losses from a Silicon Valley sector peer aren't helping, either. As a result, GOOGL options volume is running in the 96th percentile of its annual range. 

On a closer look, the 53,000 GOOGL options that have traded today represent three times the expected intraday amount. The 13 most popular strikes belong to the June series, which expires at today's close. Beyond that, traders appear to be opening positions at the weekly 7/1 680-strike put. Anyone buying short-term GOOGL options today is seemingly getting a bargain, with the stock's Schaeffer's Volatility Index (SVI) standing at 20% -- an annual low. 

Looking back, call buying has remained hot on GOOGL. 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) now stands at 1.92, which tops 83% of the past year's readings. What's more, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.74 ranks in the 21st annual percentile, meaning short-term speculators are more call-skewed than normal.

At the same time, short interest on Alphabet Inc (NASDAQ:GOOGL) has been declining. By the numbers, short interest on GOOGL has fallen by 24% since the end of 2015, and just 0.5% of its float is sold short.

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