The shares of Teladoc Health Inc (NYSE:TDOC) have been red hot, hitting fresh highs today and last seen up 2.2% at $112.39. Call traders aren't shying away, with call volume running in the 93rd annual percentile. This is mostly due to heavy activity at the February 110 call, where almost 3,000 contracts have traded, compared to fewer than 300 at the next most popular. Signs are pointing to buy-to-open activity, which would mean bulls are betting on more upside for TDOC in the coming days.
During the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have actually purchased more long puts than calls, driving the put/call volume ratio for that time to 1.05. This ranks in the 77th annual percentile, showing there's actually been unusual demand for long TDOC puts.
Longer term, the security has been a good target for premium buyers, based on its Schaeffer's Volatility Scorecard (SVS) of 69, revealing a tendency to make bigger moves than the options market has priced in over the past year. Earnings are due out after the close on Wednesday, Feb. 26.
Short interest, meanwhile, represents almost 28% of the total float, even though the telehealth name has roughly doubled in value over the past six months. At the same time, short interest did fall by 14.3% in the last two reporting periods, so maybe these bears are in covering mode -- which could mean more tailwinds for Teladoc stock.