World Series Game 6 in Toronto tonight. Go Blue Jays! A win would mean all three Blue Jays World Series clinching games in their 48-year history are Game 6s.
Enough about sports. You want to read about unusual options activity. I’m here to deliver.
Fiserv Stock’s 44% Single-Day Plunge Proves That Stop Orders Don’t Work, But This Option Strategy Could Have Prevented the Carnage
[Ashes to Alpha: Adobe’s (ADBE) Implosion Offers an Opportunity for a Rebound](https://www.barchart.com/story/news/35794447/ashes-to-alpha…
World Series Game 6 in Toronto tonight. Go Blue Jays! A win would mean all three Blue Jays World Series clinching games in their 48-year history are Game 6s.
Enough about sports. You want to read about unusual options activity. I’m here to deliver.
Fiserv Stock’s 44% Single-Day Plunge Proves That Stop Orders Don’t Work, But This Option Strategy Could Have Prevented the Carnage
Ashes to Alpha: Adobe’s (ADBE) Implosion Offers an Opportunity for a Rebound
Adobe Systems Bear Put Spread Could Return 233% in this Down Move
I’m using a slightly different screening criterion for yesterday’s unusual options activity. Previously, my two screens were 1) options expiring in seven days or more (eliminating short-term expirations) and 2) Vol/OI (volume-to-open-interest) ratios of 1.24 or higher.
In today’s screen, the Vol/OI ratio is 1.0 or higher with options expiring in seven days or more. I’ve also set a minimum open interest of 500. We’ll see if I use this screen in the future.
In yesterday’s trading, 1156 options met the criteria with 727 calls and 434 puts, a relatively bullish indicator. The highest Vol/OI ratio was Quantum Computing’s (QUBT) Nov. 7 $14 put at 85.94. Including QUBT, there were 50 options with Vol/OI ratios of 10 or higher. I think that’s where I’ll focus today’s commentary.
When it comes to investing in stocks, I tend to be a buy-and-hold type, which is rare today, but it works for me, so I’m going to stick with it.
Therefore, my three selected options will be for companies I’m bullish about over the long term.
Have an excellent weekend.
As shown above, Chipotle Mexican Grill had seven options with Vol/OI ratios above 10 yesterday. However, I’m focused on those with an open interest of 500 or more. That leaves me with the Dec. 19 $27.50 put, Dec. 19 $37.50 put, and Dec. 19 $35 call.
CMG stock has not had a good week. Over the past five trading days, its shares have lost nearly 23% of their value. That will happen when you cut your forecast for same-store sales growth because customers aged 25 to 35 (a key customer demographic) are visiting less.
I don’t see the scaling back on visits by its customers as a long-term issue. Instead, it’s a temporary one that could lead to increased volatility in the stock. That’s music to options investors’ ears.
Analysts still like Chipotle–although they also liked Fiserv (FI)**, **and it got taken to the woodshed, losing 44% of its value in one day–with 25 out of the 33 analysts covering CMG rating it a Buy (4.42 out of 5) with a $53.84 target price, well above its current share price.