Most Active Weekly Options: Tesla Motors Inc and Walt Disney Co

Weekly call options have been popular on Tesla Motors Inc (NASDAQ:TSLA) and Walt Disney Co (NYSE:DIS)

Josh Selway
Jun 20, 2016 at 2:13 PM
facebook twitter 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 of interest are automaker Tesla Motors Inc (NASDAQ:TSLA) and media stock Walt Disney Co (NYSE:DIS).


Most Active Options June 20

TSLA is up 2.6% today at $221.05, after analysts at RBC waxed optimistic on the stock after a visit with the company. Specifically, RBC sounded assured that Tesla could ramp up its production capabilities for the Model X and Model 3. Additionally, reports are circulating that Panasonic will begin mass-producing electric-battery parts for the Model 3 ahead of schedule. While TSLA is still down 8% for the year, it has recently enjoyed support from its 120-day moving average. 

Options traders would like to see additional support going forward. 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 comes in at 1.24. Not only is this ratio 63% higher than it was just a month ago, but it also tops almost 80% of the past year's readings. In short, call buying has been much hotter than usual on TSLA. 

Weekly options bulls are taking action today, too. The weekly 6/24 series accounts for TSLA's nine most popular options, with the 225- and 230-strike calls in the lead. It looks safe to assume new positions are being purchased at each of these strikes, meaning traders are betting on more gains from Tesla Motors Inc before the options expire this Friday. In other news, CEO Elon Musk just revealed a little-known fact about the Model S

DIS is also higher today, gaining 1% at $99.95, after the company's "Finding Dory" movie had a huge opening weekend and its ESPN business struck a massive media deal with the Big Ten Conference. However, the stock is running out of steam near the round century mark -- as well as its 50-day moving average, a trendline that resisted the stock in late May.

In the options pits, speculators have grown skeptical in recent weeks, per DIS' 10-day put/call volume ratio of 1.55 at the ISE, CBOE, and PHLX -- an annual high. At the same time, though, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.93 ranks in the 25th annual percentile, so short-term speculators are actually more call-skewed than normal -- a trend that's continuing today. 

DIS call options are trading at 1.8 times the expected intraday amount today, thanks to huge interest in the weekly 6/24 101-strike call. Data from the ISE confirms some buy-to-open activity here, so traders are betting on the stock to climb atop $101 before the end of the week. However, if DIS continues to have trouble near the both the century mark and its 50-day trendline, an unwinding of these and other short-term bullish options positions could weigh on Walt Disney Co in the near term. 

Schaeffer's Expiration Week Countdown subscribers just made 75.7% GAINS on Walt Disney (DIS) calls! Sign up now for a trial subscription.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 

Partnercenter