Q2 STOCKS TO BUY

Weekly Option Traders Surround Soaring SolarCity Corp (SCTY)

SolarCity Corp (NASDAQ:SCTY) unveiled the world's most efficient rooftop solar panels

Oct 2, 2015 at 2:21 PM
facebook X logo linkedin


SolarCity Corp (NASDAQ:SCTY) is popping today -- up 5.3% at $45.50 -- on news the company's rooftop solar panels are the most efficient on the globe. Specifically, SCTY's rooftop panels sport a module efficiency that tops 22%, exceeding the 21.5% of former champ SunPower Corporation (NASDAQ:SPWR).

The day's positive price action has spurred a rush of call activity in the equity's options pits, with the contracts crossing at two times the average intraday pace. A number of eleventh-hour speculators are betting on this upside to continue through tonight's close, with buy-to-open activity detected at SCTY's weekly 10/2 44- and 44.50-strike calls.

Widening the sentiment scope reveals a more put-skewed bias in the security's options arena. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SCTY's 10-day put/call volume ratio of 1.87 ranks in the 84th percentile of its annual range. In other words, puts have been bought to open over calls at a faster-than-usual clip in recent weeks.

Echoing this is the security's Schaeffer's put/call open interest ratio (SOIR) of 1.81. Not only does this show that put open interest nearly doubles call open interest among options set to expire in three months or less, but it sits just 10 percentage points from a 52-week peak. Simply stated, speculative traders are more put-heavy than usual toward SCTY.

In the front-month series, specifically, peak put open interest of 9,991 contracts is currently found at SCTY's in-the-money October 50 strike. According to the ISE, CBOE, and PHLX, a number of these puts were bought to open in recent months, meaning speculators have been expecting the stock to settle south of the round-number mark at the close on Friday, Oct. 16.

On the charts, SolarCity Corp (NASDAQ:SCTY) has been charting a path lower since topping out at an annual high of $63.79 in mid-May, down 28.7%. More recently, the stock breached $50 in mid-August, and has been pressured lower by its 32-day moving average in the ensuing weeks.
 
 

“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