1-Jan-2012 - Call Volume Ramps Up on Computer Sciences Corporation

Visted 4 times

Traders paid some bullish attention to Exco Resources (XCO - 10.31) yesterday, cheap NFL jerseys as close to 8,200 calls crossed the tape, reflecting seven times the equity's average daily volume. Just over 2,500 of these calls were exchanged at the out-of-the-money February 12 strike -- more than half of them at the ask price, suggesting they were purchased. Open interest on this option jumped by 1,929 contracts overnight, so it's safe to assume that most of the volume at this strike was made up of newly opened positions. This call is now home to open interest of 1,933 contracts. What's more, the Schaeffer's put/call open interest ratio (SOIR) for XCO checks in at 0.24, which means that calls more than quadruple puts custom nhl jerseys among options expiring within three months. In fact, this ratio ranks in only the 8th percentile of its annual range, confirming that short-term options players have been more bullishly aligned toward the stock just 8% of the time during the past year. Meanwhile, short interest on the oil and gas concern plummeted by 27.43% over the most recent reporting period. Even so, these bearish plays still make up a respectable 7.31% of XCO's float, which could imply that some of the recent call volume might be the result of hedging activity by shorts. Technically speaking, XCO has lost more than 47% of its value year-to-date, and has underperformed the broader S&P 500 Index (SPX) by over 21% during the past 40 sessions. Aside from a brief four-week stint above its 10-week moving average back in October, the stock continues to struggle beneath this trendline, which -- along with its 20-week counterpart -- have served as resistance since early May. At last check, however, XCO is up about 1.7% and is trading custom nfl jerseys at 10.31.

Comments (0)Post Comment View Whole Blog