PG&E Options Traders Target Familiar Ceiling

The $20 level has kept a lid on PCG breakouts for most of 2019

Managing Editor
Apr 4, 2019 at 1:43 PM
facebook X logo linkedin


The shares of PG&E Corporation (NYSE:PCG) are up 2.8% to trade at $19.03 today, after the utility company appointed William Johnson as its new CEO. PCG also said it's reshuffling its board, adding 10 new directors, while seven current board members will step down. In the wake of the news, options traders have taken renewed interest in the beleaguered stock.

More specifically, over 17,000 PCG options have changed hands today -- a modest uptick to the expected intraday amount. The April 20 call is most active, but there's also interesting activity at the weekly 4/5 20-strike call, where it appears new positions are being sold. If this is the case, call writers are banking on the $20 level to serve as a short-term ceiling through expiration at the close tomorrow, April 5.

More broadly speaking, long calls have been popular. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows speculative players have bought to open 23,137 calls in the last 10 sessions, compared to 5,669 puts. Considering how short interest increased by 24% in the two most recent reporting periods, its possible some of this call buying could be shorts seeking an options hedge.

PG&E stock has spent most of 2019 churning below that round $20 level -- home to an early January bear gap. In the past six months, the shares have shed 59%, mostly in reaction to the deadly California wildfires in 2018. However, some analysts are starting to warm to PCG, with the stock found at the top of Goldman Sachs' upside list earlier this week. The brokerage firm also expects the security to double over the next 12 months. There's still a ways to go though, with 11 out of 14 brokerages rating PCG a "hold" or "strong sell."

Daily Stock Chart PCG

 

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