AAL

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 X logo 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. 

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.