Calls are running in the 98th annual percentile for Bloom Energy stock
It's no secret that markets have continued to fail to grasp long-term stability as we move into the fourth quarter. Today is no exception, with the likes of big names in both the energy and gambling sectors seeing massive shifts in sentiment. Below, we will take a look at one of the best and one of the worst stock performers on the market.
One of the best performers on the New York Stock Exchange (NYSE) this afternoon is Bloom Energy Corp (NYSE:BE), up 14.2% at $18.20, at last check. While the catalyst behind today’s impressive surge is unclear, the outperformance has sent BE to a more than 136% year-to-date lead, and within a chip shot of the equity’s July 22 annual peak of $19.67.
In the options pits, call traders have been flocking to the equity. More than 9,000 calls have been exchanged so far, compared to just 731 puts. Call volume is running at four times the expected rate, and in the 98th annual percentile of its annual range. Most popular looks to be the October 18- and 20-strike calls, meaning options traders expect the equity to soar to at least $18 by this month's expiration.
Meanwhile, near the bottom of the Nasdaq is DraftKings Inc (NASDAQ:DKNG), down 7.5% at $59.00, after early this morning announcing a class "A" stock offering of 32 million shares. Up nearly six-fold in 2020, the equity has seen no shortage of gains on the charts. In fact, just this past Friday, Oct. 2, the gambling name touched a record high of $64.19.
In terms of DKNG options, puts are looking popular today, running at double the normal rate, with 42,000 contracts across the tape so far. This surge in put buying is pacing at the highest annual percentile, with traders showing a preference for the weekly 10/9 60- and 65-strike calls. This means bears are wary of anything other than a modest price improvement by week's end for DraftKings' stock.