Most Active Weekly Options: AT&T Inc. and Freeport-McMoRan Inc

Time Warner Inc (TWX) suitor AT&T Inc. (T) and mining stock Freeport-McMoRan Inc (FCX) have attracted the attention of weekly options traders recently

Oct 31, 2016 at 12:46 PM
facebook X logo linkedin

The 20 stocks listed in the table below have attracted the highest 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 are Time Warner Inc (NYSE:TWX) suitor AT&T Inc. (NYSE:T) and mining stock Freeport-McMoRan Inc (NYSE:FCX). Here's a closer look at how weekly options traders are lining up on T stock and FCX stock.

most active weekly options october 31

More than 49,450 call options have been bought to open on T in the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to 16,810 put options. The resultant call/put volume ratio of 2.94 ranks just 11 percentage points from a 52-week peak, meaning call buyers have been initiating positions at a near-annual-high clip, too.

Among weekly options, the now-expired 10/28 38.50-strike call saw the biggest rise in open interest over that time frame, while the weekly 11/4 37-strike call -- which expires at this Friday's close -- comes in at a close second, with 9,684 contracts currently outstanding. Drilling down, it seems there's been a mix of buy- and sell-to-open activity occurring at the 37 strike. In other words, call buyers expect T to break out above $37 by week's end, while call sellers are betting on the strike to serve as a short-term ceiling.

Technically, T has shed roughly 16% since running into resistance near the $43.50 mark in mid-August -- with the downside recently exacerbated by AT&T Inc.'s $85 billion bid for TWX, a move that could have possible competition from tech titan Apple Inc. (NASDAQ:AAPL). Nevertheless, the stock seems to have found a foothold in the $36.40 neighborhood, with T last seen at $36.66.

Call buyers have blasted FCX in recent weeks, per the stock's 10-day call/put volume ratio of 1.94 -- which ranks in the elevated 77th annual percentile. This call-skewed bias is evident among short-term traders, too, with FCX's front-month gamma-weighted Schaeffer's put/call open interest ratio (SOIR) docked at 0.59. Simply stated, near-the-money calls outweigh puts among options expiring in the standard November series.

Looking back over the past two weeks, FCX's weekly 11/4 11-strike call has seen increased attention, with 4,487 contracts added. This option is hot again today, and is the most active among FCX's weekly options, with 2,357 contracts traded at last check. It's possible some of these calls are being bought to open, as speculators bet on the security extending its lead north of $11 through this Friday's close.

At last check, shares of FCX were up 1.9% at $11.15. Looking back, this same area has served as a stiff ceiling for Freeport-McMoRan Inc (NYSE:FCX) in recent months, and is currently home to the stock's 120-day moving average.

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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI