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Options Volume Pops on TWTR, UAA, and FSLR Stocks

Twitter and Under Armour stocks are hitting fresh highs

Jun 4, 2018 at 2:40 PM
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Shares of social media issue Twitter Inc (NYSE:TWTR) and athletic apparel concern Under Armour Inc (NYSE:UAA) are roaring higher today, while alternative energy stock First Solar, Inc. (NASDAQ:FSLR) is sliding. However, all three names are seeing heavy options trading. We'll take a look at the recent options activity on TWTR, UAA, and FSLR below.

TWTR Stock Eyes 8th Straight Win

Twitter stock is trading up 2.2% at $37.47, earlier hitting a two-year high of $37.69, possibly getting a boost from another round of negative news surrounding rival Facebook (FB). Calls are trading at three times the expected pace, more than quadrupling the number of puts traded so far. Looking at the most popular contracts today, new positions are being opened at the weekly 6/8 39.50-strike call, where traders appear to be betting on more upside through Friday's close. There's also been notable activity at the June and July 40 calls.

If nothing else, data shows it's a great time to buy near-term TWTR options. As for the shares' long-term performance, they've more than doubled in value over the past year, and today could mark an eighth straight positive session -- their longest win streak since last July.

UAA Eyes Best Close Since Last June

Under Armour stock is trading 5.8% higher at $22.61, on pace for its best close in nearly a year. Boosting the stock is a price-target hike to $27 from $20 at Stifel, after recent communication with the retailer left the brokerage firm "highly encouraged." This is just more of the same, with UAA shares trending higher since a post-earnings bull gap in February. In the meantime, call volume is accelerated, with the options nearly doubling the volume of their put counterparts. Speculators seem to be buying to open the weekly 6/8 22.50-strike call, expecting extended upside through week's end.

FSLR Stock Breaches 200-Day

Finally, First Solar stock is under pressure due to China's new restrictive rules on solar projects. FSLR shares were last seen trading down 6.7% at $61.52, and while this puts them below the 200-day moving average for the first time in over a year, they could find support from the round $60 level that contained pullbacks in February and March, and also last November. Options traders don't appear optimistic, however. The most popular option so far today is the July 65 call, but data hints at sell-to-open activity here. Meanwhile, new positions are being opened at the weekly 6/8 61-strike put.

 

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