Brazilian Oil Name Popular Among Options Traders

The stock recently hit its highest level since January 2020

Deputy Editor
Apr 18, 2022 at 12:11 PM
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Petroleo Brasileiro ADR Reptg 2 (NYSE:PBR), better known as Petrobras, enjoyed quite a run recently amid surging oil prices. The security hit an April 13 high of $16.09 -- its highest level since January of 2020. The following day, however, PBR pivoted lower after Jose Mauro Coelho was elected as the firm's CEO for a one-year term.
Many investors have been eyeing PBR, despite the company's debt. Though, according to Coelho, the reduction of this debt will lead to bigger investments. Amid this attention, Petrobras stock appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the most weekly options volume in the last two weeks. 
During this time, 3,453,066 calls and 373,503 puts were exchanged. The January 2023 12-strike call was the most popular, followed by the June 14 call -- both of which are also the top open interest positions.


MAO April18

A bout of short covering could help explain PBR's recent rally as well, with short interest down 33.8% during the two most recent reporting periods. Now, short interest makes up a slim 0.9% of the stock's available float. 

The security is down 1% to trade at $14.57 at last check. Though PBR is now pacing for its second-straight daily loss, there is still plenty of long-term support. For instance, the stock's 60-day moving average, which helped capture its mid-March pullback, lingers below.

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