Tuesday’s Vital Data: Apple Inc. (AAPL), Tesla Motors Inc (TSLA) and Petroleo Brasileiro Petrobras SA (ADR) (PBR)

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The major market indices ended a second consecutive week on a positive note Friday, with the S&P 500 closing just shy of multi-year highs. The bullish activity led to continued popularity for call options, with the CBOE put/call volume ratio coming in at 0.56 while the ratio’s 10-day moving average fell to 0.59.

Among the top 10 most active stocks in the options pits were Apple Inc. (NASDAQ:AAPL), Tesla Motors Inc. (NASDAQ:TSLA), and Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR, NYSE:PBR.A).

Tuesday’s Vital Data: Apple Inc. (AAPL), Tesla Motors Inc (TSLA) and Petroleo Brasileiro Petrobras SA (ADR) (PBR)

Apple Inc. (AAPL)

Apple options extended their reign as the most active among stock options last week, ending Friday with 1,161,035 contracts changing hands. On the day, calls were once again the most popular, with 67% of Friday’s volume trading on the call side.

According to data from Schaffer’s Research, however, put open interest has actually been rising faster than call open interest since the start of February, with AAPL stock’s put/call open interest ratio rising from 0.56 on Feb. 2 to Friday’s perch at 0.72. Driving call volume last week on AAPL, reports hit the Street that Apple is developing an electric vehicle. Furthermore, according to “people familiar with the matter,” Apple has devoted several hundred people to the project.

The news has led many to speculate on both Apple’s intentions and the potential impact on Tesla Motors.

Tesla Motors Inc (TSLA)

Speaking of Tesla Motors, the company was inundated with comparisons to Apple last week in the wake of news that the latter was developing a secret electric car project. As for TSLA stock itself, the shares were deluged with price target cuts, with Barclays, Deutsche Bank and Goldman Sachs among the brokerage firms weighing in. According to Thomson/First Call data, TSLA’s current 12-month consensus price target rests at $275.

On the options front, TSLA stock continues to draw more put activity than call activity. On Friday, the stock saw 167,021 option contracts change hands, with 54% of that volume taking place on the put side. TSLA hit a low near $193 on Thursday in the wake of a poorly received quarterly earnings report. This elevated put volume could indicate a wide range of activity from profit taking to put buying as a way to hedge a newly initiated long position on the stock.

Petroleo Brasileiro Petrobras SA (ADR) (PBR)

Shares of state-run Brazilian oil company Petroleo Brasileiro Petrobras surged nearly 7% on Friday after new CEO Aldemir Bendine announced that he would work to restore the company’s credibility in the wake of a devastating corruption scandal. Petrobras also said it expects to release audited third-quarter results in March, and fourth-quarter results in May.

PBR stock has been pummeled during the past several years, with the shares shedding more than 80% since 2011. That said, calls edged out puts on Friday, with 57% of the 321,215 contracts trading on PBR on Friday crossing on the call side. The most interesting activity Friday was the 1,141 contracts trading on the 7.50 strike in the weekly March 6 series, with appeared to pair up with the 1,159 contracts at the 6.50 strike in the same series. Both strikes saw volume in excess of their standing open interest, indicating the initiation of fresh positions on PBR stock.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/02/tuesdays-vital-data-apple-inc-aapl-tesla-motors-inc-tsla-and-petroleo-brasileiro-petrobras-sa-adr-pbr/.

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