Breaking Down Gogo Stock's Unusual Options Activity

Plus, some key technical GOGO levels to watch

Digital Content Manager
Nov 15, 2022 at 1:01 PM
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The shares of telecom company Gogo Inc (NASDAQ:GOGO) are getting a boost with the rest of the market, last seen up 3.8% at $15.44. While the stock is testing a recent consolidation level at $15.50, options traders are not convinced. 

There's some unusually heavy put volume happening in the options pits today, with 16,000 of these contracts exchanged, which is 86 times the intraday average. Roughly 3,970 calls have been traded in this same time period, volume that's eight times what's typically seen at this point. The two most popular positions by far are the February 2023 15-strike put and the November 20 put, with new positions being opened at both. The February 2023 16-strike call is popular as well. 

This activity is even more unusual because, lately, calls have reigned. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 21.50, which stands higher than 92% of readings from the past year.

Now looks like an ideal time to join these traders. The equity's Schaeffer's Volatility Index (SVI) of 51% sits in the very low 5th percentile of its 12-month range. This means options traders are pricing in very low volatility expectations for GOGO right now. Plus, the stock's Schaeffer's Volatility Scorecard (SVS) is at 78 out of a possible 100, meaning Gogo stock tends to outperform said volatility estimates. 

Overall it's been a generally upbeat month for GOGO so far; the stock is up 8.4% in November and up 27.1% in the fourth quarter. Amid this recent rally of its Sept. 28 annual bottom of $11.57, the shares' 10-day moving average has turned higher in the last two weeks and offered support.

gogo nov 15

 

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