Q2 STOCKS TO BUY

Options Traders Target Sinking Sunrun Stock

The stock has shed 56% during the last three months

Digital Content Manager
Jan 31, 2022 at 3:38 PM
facebook X logo linkedin


Solar energy concern Sunrun Inc (NASDAQ:RUN) is following the rest of the market higher today, as it attempts to come back from what's shaped up to be a pretty dismal winter. The equity lost 56% during the last three months, and on Friday, it hit a nearly two-year low of $21.42. Though a rally attempt was made in October, it ran out of steam at the $60 level, while the 20-day moving average has been applying pressure more recently.  RUN was last seen up 7.6% at $25.19, though its looking to notch its third-straight monthly loss, down 26.5% in January. 

The stock last week announced it was signing up for a new upsized $425 million recourse lending facility, which matures in January 2025, to replace its $250 million lending facility. This may have sparked the attention of the options pits, as the stock landed on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks on the S&P 400 (IDX) that attracted the highest weekly options volume over the last two weeks. Per White's list, 109,199 calls and 100,540 puts exchanged hands during that time period. The February 25 put was the most popular, followed by the 30 put in the same monthly series.

mao jan 31

While calls outnumbered puts during this time period, there was a bearish shift among options traders. This is per RUN's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 84% of readings from the past year, suggesting a healthier-than-usual appetite for long puts of late. 

Echoing this, the stock sports a Schaeffer's put/call open interest ratio (SOIR) of 0.95, which stands higher than 95% of readings from the past year. This implies short-term options traders were rarely more put-biased during this time period. 

Short sellers have also targeted the stock. Short interest rose 11.1% in the last two reporting periods, and now makes up 18.4% of the stock's available float, or over six days' worth of pent-up buying power, at the stock's average daily pace of trading. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter