Andrea Kramer (akramer@sir-inc.com) Texas-based information-technology issue SolarWinds, Inc. (SWI) will take the earnings stage after the closing bell today. Historically speaking, the firm has exceeded the Street's per-share earnings predictions in each of the past four quarters ? which could explain the revved-up call activity of late.
During the past couple of weeks on the International Securities Exchange (ISE), the security has racked up a call/put volume ratio of 191.67, which registers in the 98th percentile of its annual range. In other words, options players have bought to open SWI calls over puts at a faster clip just 2% of the time during the past year.
Drawing the largest crowd has been the in-the-money December 15 call, which has seen open interest swell by almost 1,200 contracts during the past 10 sessions. As a result, the 15 strike is now home to peak call open interest in the back-month series, with close to 1,400 contracts outstanding.
Echoing that growing affinity for SWI calls, the stock has already seen more than 1,500 of these optimistically oriented options change hands today ? about 12 times the security's average daily call volume of fewer than 120 contracts. However, traders have turned their attention to the near-the-money November and December 17.50-strike calls, which have seen about 500 and 350 contracts exchanged, respectively.
At last check, the shares of SWI have tacked on 0.9% to loiter in the $17.75 area.
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