Weeklies Pop on BUD, GPRO Stocks

Many new options positions are opening on BUD and GPRO

Josh Selway

Oct 1, 2019 at 2:54 PM

BUD
GPRO

Anheuser-Busch Inbev NV (NYSE:BUD) is trading down 2.2% today at $93.07, but some options traders apparently are expecting a quick turnaround. The weekly 10/4 series is popular, and on the call side new positions are opening at the 95.50-, 96-, and 96.50-strikes. Those buying the calls expect BUD shares to move higher by the close this Friday, Oct. 4, when the weeklies expire.

bud stock oct 1

Call buying was popular coming into today, with the 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) coming in at 5.86. Not only does this show almost six long calls for every put in the past 10 days, but it ranks in the 91st annual percentile, indicating such demand is uncommon.

Another name seeing weekly options trading is GoPro Inc (NASDAQ:GPRO). The company just unveiled some new cameras, and the stock is trading up 2.5% at $5.32. New positions are opening at the weekly 10/4 5.50-strike call, while the 6-strike call is also seeing likely buy-to-open activity.

Near-term open interest was already call-skewed coming into today, based on the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.57, which ranks in the 10th annual percentile. Peak front-month open interest also comes in at the October 6 call. The shares topped out just below this strike earlier today, but were last seen back below the 200-day moving average,

gpro stock oct 1

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!