IQ Call Traders Ignore Chart Resistance

IQ call volume is huge today

Josh Selway

Sep 11, 2019 at 2:43 PM

The shares of Chinese video name IQIYI Inc (NASDAQ:IQ) are gaining today, last seen 6.6% higher at $19.25. However, the stock again found trouble at its 200-day moving average, a trendline we identified last month as former resistance. Even with this potential roadblock on the charts, IQ options traders are targeting calls at a rapid pace.

iq stock price sept 11

So far, more than 44,000 calls have traded, compared to an average daily volume of just 12,000. Most popular by a wide margin is the weekly 9/13 20.50-strike call, with the September 21 and 19 calls next in line. New positions are opening at each, so traders may be betting on more upside.

From a broader perspective, puts have had the edge overall, with put open interest of roughly 245,000 ranking in the 96th annual percentile, while the 207,629 open calls is only good enough for the 11th annual percentile. In the front-month September series, there's notable open interest at the 17.50 put. Either way, premiums were rather low coming into today, based on the Schaeffer's Volatility Index (SVI) of 46% that ranks in the 9th annual percentile.

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