Options Traders Chime in on DISH After Notes Offering

Options volume is running at triple what's typically seen

Deputy Editor
Dec 16, 2020 at 3:11 PM
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The shares of Dish Network Corporation (NASDAQ:DISH) are down 8.7% at $32.58 at last check, after the company announced a $2 billion convertible notes offering. Dish stock has been steadily falling on the charts since the start of December, after it was rejected by the $37 region -- a level that has kept a ceiling on the shares since August. Today's negative price action has DISH slipping back below its year-to-date breakeven. 

DISH Dec 16

Options traders are taking notice, with 29,000 calls and 7,935 puts across the tape so far -- triple what's typically seen at this point. The March 35 call is the most popular, followed by the 50 call from the same series.

Calls have outnumbered puts on an absolute basis in the past two weeks as well; however, options bears are still chiming in more than usual. This is per DISH's 10-day put/call volume ratio of 0.62 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 77% of readings from the past 12 months. 

These premiums are well-priced at the moment too, per the stock's Schaeffer's Volatility Index (SVI) of 53%, which stands higher than 18% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations at the moment.


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