Options Traders React to Box Buyout Buzz

Traders are targeting calls in the January and February series

Jan 2, 2019 at 1:16 PM
facebook X logo linkedin

A number of tech stocks have turned higher this afternoon, helping push the Nasdaq into positive territory. One name making a notable upside move is Box Inc (NYSE:BOX). The shares of the cloud specialist were last seen trading up 8.1% at $18.25, thanks to fresh M&A buzz pegging the company as a potential buyout target. Options activity has picked up in a big way as a result, too.

Call volume on BOX was last seen running at more than five times the daily average, with calls accounting for the seven most popular contracts today. Traders are seemingly buying to open positions at the January 17- and 18-strike calls, and at the February 19 call. These bulls would be wagering on the security extending its run higher in the coming weeks.

Looking at recent trading data on the security, the 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 2.46, showing call buying has easily outpaced put buying in the past 10 days. But it should be noted that this reading ranks in the bottom quartile of its annual range, so put buying has actually picked up on a relative basis.

Today's price action has Box again battling its 50-day moving average. The shares have struggled to maintain a consistent foothold atop this important trendline in the past six months, a time period in which they've fallen almost 29%.

box stock chart


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI