AAL

Call Volume Explodes as Etsy Inc (ETSY) Breaks Out

Etsy Inc (NASDAQ:ETSY) call volume is running at 90 times the average intraday pace

Jul 12, 2016 at 2:45 PM
facebook X logo linkedin


Etsy Inc (NASDAQ:ETSY) is soaring, with some speculating the stock is getting a lift from the hype surrounding Amazon.com, Inc.'s (NASDAQ:AMZN) Prime Day. While AMZN stock is failing to capitalize on the buzz, shares of ETSY were last seen up 7.4% at $10.43. Regardless of the reason, ETSY call volume is running at 90 times what's typically seen at this point in the day, with a number of option traders eyeing an extended stay in double-digit territory.

By the numbers, more than 15,000 call options have changed hands so far, compared to fewer than 400 put options. Almost all of the action has centered at ETSY's September 10 call, where 10,525 contracts are on the tape. Trade-Alert suggests these now in-the-money calls are being bought to open, meaning speculators are betting the stock will continue to rally north of $10 over the next two months. What's more, should these calls translate into new positions overnight, it will more than double ETSY's current call open interest.

More broadly speaking, ETSY's options pits have been relatively bare, with the stock sporting an average daily volume of just 255 total contracts. Across the major exchanges, though, the tendency has been toward long calls over puts in recent months. Specifically, the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stands at a top-heavy 7.28, and arrives in the 80th annual percentile.

Echoing this call-skewed backdrop is ETSY's Schaeffer's put/call open interest ratio (SOIR) of 0.35. Not only does this show that calls almost triple puts among options expiring in three months or less, but it ranks lower than 79% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-heavy than usual toward the stock.

Technically, ETSY has been a long-term laggard, down more than 35% year-over-year. However, thanks to today's surge, the shares of Etsy Inc (NASDAQ:ETSY) are on pace to close north of the round $10 level for the first time since Nov. 3.

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.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.