Symantec Options Hot Ahead of Conference Call

SYMC traders are buying short-term call options

by Andrea Kramer

Published on May 14, 2018 at 2:18 PM

The shares of cybersecurity concern Symantec Corporation (NASDAQ:SYMC) on Friday suffered their worst session in years, after the company revealed an internal audit stemming from concerns flagged by a former employee -- though no further details were given. Today, however, SYMC shareholders should get some answers, with Symantec hosting a conference call after tonight's close to discuss the probe. As such, SYMC is the most active stock on the Nasdaq today, and options are flying off the shelves.

At last check, Symantec shares were 8.4% higher to trade at $21.16. The stock still has quite a ways to go before erasing the aforementioned bear gap from Friday, however. What's more, even before last week's brutal sell-off, SYMC stock had been struggling to conquer the $29-$30 area, which is also home to the security's 200-day moving average.

SYMC stock chart

Ahead of tonight's conference call, Symantec has seen roughly 52,000 calls and 34,000 puts change hands -- five times its average intraday volume. SYMC stock's May 22 call is garnering notable attention, with nearly 10,000 contracts exchanged. Trade-Alert points to likely buy-to-open activity at the call, with speculators expecting Symantec shares to rocket back above $22 before the end of the week, when front-month options expire.

Options volume today is now pacing for the 99th percentile of its annual range, after touching new 52-week highs on Friday. Despite SYMC's plummet last week, the now deep-out-of-the-money May 30 call saw the biggest open interest increase over the weekend, as one trader bought to open nearly 13,000 contracts Friday.

In fact, Symantec calls have been more popular than usual for weeks. During the past 10 days on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security racked up a call/put volume ratio of 3.31 -- in the 80th percentile of its annual range. As such, SYMC's 30-day at-the-money implied volatility skew of 1.3% is in the bottom 10% of its annual range. This indicates that SYMC's short-term puts have rarely been cheaper relative to calls.

Semiconductor Sell-Off Could be Good News for This Chip Stock
Pullbacks to the 320-day moving average have marked buying opportunities
Time To Bet On a Netflix Stock Rally
The shares are trading near a trendline that has historically bullish implications
Molina Healthcare Stock Could Make a Big Move Higher
A "buy" signal is flashing for MOH again
From Schaeffer's Pro Traders
Weekly Options Secrets Revealed

Direct from our Schaeffer's traders, your FREE guide to winning with weekly options!


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Tax Plan is Never Going to Grow the Economy… Unless This Is Fixed First
Are you ready for a potential economic reset?
Amedisys Carves Out New Highs on Oppenheimer's Latest Hike
AMED nabbed another new record high earlier today
Walmart Earnings, Tesla Share Spotlight With Turkey, Trade
The retailer's earnings have the Dow headed toward a weekly win
The Tax Plan is Never Going to Grow the Economy… Unless This Is Fixed First
Are you ready for a potential economic reset?