Wall Street Newcomer Sees Surge in Options Activity

Puts have taken precedent during today's trading

Deputy Editor
Nov 30, 2020 at 2:36 PM
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Below is a list of 20 stocks that have attracted the highest weekly options volume in the last 10 trading days, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White, with highlighted names new to the list. The one name that just showed up on the list this  week is China-based electric vehicle maker Xpeng Inc (NYSE:XPEV).

The stock went public back in late August, with an initial public offering (IPO) price of $15. The equity closed at $21.20 during this first session, and has since more than doubled, hitting an all-time high of $74.49 on Nov. 24, before taking a breather. In fact, the security is down 9.5% to trade at $58.16 today, though the 10-day moving average looks to be holding out as an area of support for the time being. 

XPEV chart Nov 30

As previously mentioned, options traders have been paying attention to the Tesla (TSLA) rival. In the past two weeks, with 287,736 calls and 190,727 puts exchanged. The November 50-strike call was the most popular during this time period, with 118,429 contracts across the tape, followed by the weekly 11/27 70-strike call. 

MAO Nov 30

Today's pullback has attracted quite a few options bears to the table. So far, 57,0000 puts have crossed the tape, compared to 45,000 calls. Seeing the most action are the weekly 12/31 45- and 40-strike puts, where new positions are currently being opened. 

A look at analyst coverage shows optimism all around. The security boasts four "strong buy" ratings, with not a single "sell" or "hold" to be seen. There could be some room for price-target hikes, however, should the equity hold out above its 10-day moving average. The 12-month consensus price target of $49.12 is a hefty 15.6% discount to current levels. 

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