Most Active Weekly Options: Twitter Inc and Apple Inc.

Weekly options continue to be popular on both Twitter Inc (TWTR) and Apple Inc. (AAPL)

Dec 22, 2016 at 3:02 PM
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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 names of notable interest are social media stock Twitter Inc (NYSE:TWTR) and iPhone parent Apple Inc. (NASDAQ:AAPL). Here's a quick look at how options traders are lining up on TWTR and AAPL.

most active weekly options December 22

TWTR is getting demolished this afternoon, down 4.5% at $16.31 -- and on track for a seventh consecutive daily loss. Panic seems to be persisting amid a recent exodus of top executives. Year-to-date, the shares have now surrendered nearly 30%.

Nonetheless, call buying has been the predominant strategy in TWTR's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the microblogging stock has seen 4.30 calls bought to open for every put during the past two weeks -- a ratio that ranks in the bullishly skewed 84th annual percentile. Echoing this, Twitter's Schaeffer's put/call open interest ratio (SOIR) of 0.42 rests in the low 7th annual percentile, hinting at a near-extreme call skew among options in the front three-months' series. Should option bulls begin hitting the exits, the shares could be pressured further south.

Today, however, Twitter Inc put options are flying off the shelves at nearly double the usual intraday rate. The weekly 12/23 17 strike -- which is now in the money -- is the most active put option, and it appears some buy-to-open activity may be transpiring.

Meanwhile, fresh off yesterday's patent infringement lawsuit, AAPL is down 0.8% at $116.07 -- but remains about 10% higher in 2016. Separately, despite reiterating a "buy" rating and an $135 price target, Brean Capital expressed caution about the upcoming iPhone cycle. "Given the lack of model clarity, along with lack of super compelling new features and, frankly, higher ASPs in the U.S given the roll-back of carrier subsidies, competition in China, and higher ASPs in India, we believe it's very possible that the CY'18 demand is more muted that what we'd all originally envisioned," Brean explained.

That isn't stopping options traders from buying to open calls today, with the most action taking place at the weekly 12/23 117 strike. ISE data confirms new positions have been purchased, though it appears some are tied to stock. In any case, today's call buying merely echoes what we've witnessed in recent weeks at the ISE, CBOE, and PHLX. Apple Inc.'s 10-day call/put volume ratio of 2.05 sits just 8 percentage points from a 12-month peak.

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