MMR

Options Traders Stay Bullish on Solar Stock

Shares are back below the 40-day moving average

Digital Content Manager
Aug 7, 2023 at 3:17 PM
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Sunrun Inc (NASDAQ:RUN) stock is down 0.8% to trade at $17.41 at last check, as it continues to cool off from a post-earnings surge. The company reported better-than-expected second-quarter profits last week, but revenue missed the mark. Though the shares moved up to the $22 region after the results, they quickly slipped back below their 40-day moving average. Year-over-year, RUN is down 47.7%.

RUN 40Day

The results caused quite the stir in the options pits. In fact, RUN made it to Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 (SP400) stocks that attracted the highest weekly options volume in the last 10 days. The equity saw 232,781 calls and 107,681 puts exchanged. The weekly 8/4 20-strike call was the most popular contract by far.

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Longer term, options bulls have ruled the roost. This is per Sunrun stock's 50-day call/put volume ratio of 2.48 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of readings from the past 12 months.

Meanwhile, short sellers have been piling on. Short interest is up 8.3% in the last two reporting periods, and the 37.19 million shares sold short make up 17.7% of the stock's available float. It would take almost one week to buy back these bearish bets, at RUN's average pace of daily trading. 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

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