2 Social Media Stocks Seeing Heavy Call Trading

The front-month January 2020 18 call has seen the largest increase in open interest for SNAP

by Emma Duncan

Published on Dec 23, 2019 at 2:39 PM

The 20 stocks listed in the table below have attracted the highest weekly options volume during the past 10 trading days. Data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. The stocks highlighted in yellow are new to the list, including Uber Technologies Inc (NYSE:UBER), which made headlines earlier today after it was revealed that co-founder and former CEO Travis Kalanick had sold more than 90% of his stake in the ride-hailing app. Below we will take a deep dive into a handful of other notable names on the list, including Snap Inc (NYSE:SNAP), Twitter Inc (NYSE:TWTR), and Shopify Inc (NYSE:SHOP).

MAOW Dec 23

Just 10 days off receiving a notable upgrade out of JMP Securities, SNAP is seeing an influx in call buying within this time frame, with 133,168 call options versus 54,853 put options exchanged so far. During the past two weeks, the front-month January 2020 18 call has seen the highest increase in open interest, with the now expired, December 15.50 call, not too far behind. Snap stock has been working to recover from its mid-October pullback, recently overcoming the 80-day ceiling, and now hosts a 181% year-to-date gain. On the day, SNAP is down 0.4% at $15.49.

Also a new name to the list, TWTR has been in recovery mode too, just this week pushing above the 50-day moving average for the first time since late September. This afternoon the shares are up 1.3% at $32.54, adding to its now 18% year-over-year lead. Looking at options, 162,534 calls and 36,232 puts have exchanged hands during the past two weeks of trading, with the recently expired December 32 call and weekly 12/27 31-strike call most active during this time frame.

Online e-commerce concern SHOP's weekly options have been popular for awhile now, and as of today have accumulated 118,953 call options and 71,952 put options within the past two weeks. Most popular today are the weekly 12/27 395- and 400-strike calls. At last check, SHOP is trading at breakeven, or $390. Year-to-date, Shopify stock has tacked on an impressive 182%, with the 150- and 180-day moving averages capturing multiple pullbacks during the stock's late-September through early November's rough patch. 


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