2 Soaring Cloud Stocks Seeing Accelerated Call Activity

BOX stock has surged to a record high

May 7, 2018 at 2:47 PM
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Cloud stocks Box Inc (NYSE:BOX) and Pure Storage Inc (NYSE:PSTG) are soaring today, with no clear catalyst behind the surge. What's more, call volume is exploding on both, with options traders seemingly betting on more upside for shares of BOX and PSTG. We'll take a closer look at the data on each name below.

BOX Bulls Bet on a Breakout to $29

Box stock is trading up 5% today at $25.47, earlier reaching a record high of $25.66. The shares have been trending higher since dipping below $10 back in July 2016. In 2018 alone the equity is up almost 21%, getting a boost late last month after high-profile investor Chamath Palihapitiya shared his admiration for the company, calling it his favorite play on artificial intelligence.

The options activity today appears very bullish, too. Total call volume has already more than doubled the daily average, and the June 29 call has seen the most action. It's possible traders are buying to open the options, hinting at expectations of an extended run higher from Box shares over the next month and a half. There's also been heavy call activity at the May 23 and 25 strikes, as well as the July 27 strike.

This rush for BOX call options is nothing new. In fact, 18,625 calls were bought to open during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 3,173 puts. 

PSTG Stock Eyes Fresh High

Pure Storage stock is having an even bigger day, last seen up 6.6% at $22.35, threatening its all-time high of $22.60 from Feb. 27. Really, this is just more of the same from PSTG, which has almost doubled over the past 12 months, recently bouncing from familiar support at the 80-day moving average.

As for options activity, nearly 3,900 calls have traded today, compared to just 377 puts. Leading the way is the May 20 call, followed by the June 22.50 call. For comparison, there have been only 10 puts and 489 calls bought to open during the past two weeks at the ISE, CBOE, and PHLX.

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