Call Traders Flock to Rising PG&E Stock

PCG will be added to the MSCI World Index

Deputy Editor
Aug 13, 2020 at 3:20 PM
facebook twitter linkedin


Beleaguered utility giant PG&E Corporation (NYSE:PCG) is up 3.9% at $9.64 this afternoon, amid news that the stock will soon be added to the Morgan Stanley Capital International (MSCI) World Index. On the charts, PCG has been trading sideways with pressure above at the $9.50 region. Today's rise, however, has the equity breaking past pressure at the 40-day moving average for the first time since mid-July. Year-to-date, PCG is still down 11.2%. 

PCG August 13

Options traders have been all too willing to chime in today, with 61,000 calls and 19,000 puts across the tape so far, nearly double the expected volume. Most popular is the weekly 8/14 9.5-strike call, where new positions are being opened. This means options players are betting on more upside for PCG by tomorrow, when the contracts expire.

This penchant for calls has been the norm recently. PCG's 10-day call/put volume ratio of 14.57 and 50-day call/put volume ratio of 9.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX)  both stand higher than all other readings from the past year. This means traders haven't been more bullish on PCG in the past 12 months. 

Now would be a good time to weigh in on these options as well. The stock's Schaeffer's Volatility Index (SVI) of 33% stands in the bottom percentile of all other readings in its annual range, implying that options players are pricing in incredibly low volatility expectations at the moment. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners