Take note of CEG's 5-day, 10-day, and 20-day moving averages
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Energy stock Constellation Energy Corp (NASDAQ:CEG) just saw a hard bounce at its final large put strike earlier this week, and now has taken back the peak put at the $180 area. The stock has climbed over 60% in 2024 already, seeing a pivot level at $182.
CEG is also breaking above the 20-day moving average, while the 5- and 10-day moving averages curl below. To top off the outperformance, Constellation Energy posted strong seasonal data for the third quarter this past Tuesday, Aug. 6.
Short-term options traders have been more bearish than usual, per the security's Schaeffer's put/call open interest ratio (SOIR) of 1.12. It’s also worth noting that the stock's Schaeffer's Volatility Scorecard (SVS) ranks at 78 out of 100. This means the security outperformed volatility expectations in the past year.
Our recommended call option has a leverage ratio of 5.9, and will double on a 14.8% rise in the underlying security.