Call Traders Flock To Red-Hot FLEX
The shares of electronics company Flex (FLEX) are up 2.5% at $14.96 at last check, earlier trading up at $15.61 – a fresh two-year high. Since the stock’s Oct. 16 bull gap after RBC upgraded the stock to “outperform” from “sector perform,” with an added price-target hike alongside J.P. Morgan, FLEX has kept climbing on the charts. Now eyeing its fourth-straight week in the black, the equity is up 18.7% year-to-date.
The recent positive price action has options bulls racing towards Flex stock. So far today, 30,000 calls have crossed the tape, 11 times what is typically seen at this point, with call volume pacing for the 99th percentile of its annual range. The December 18 call, where new positions are being opened, is the most popular option today by far.
Though volume is taking off today, the options pits have echoed this sentiment for the past couple weeks. FLEX sports a 10-day call/put volume ratio of 28.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This eye-popping ratio sits in the 90th percentile of the security’s annual range, meaning calls are being picked up at a much faster-than-usual rate.
Now looks to be an attractive time to speculate on FLEX with near-term options, too. This is per the stock’s Schaeffer’s Volatility Index (SVI) of 63%, which registers in the 25th percentile of its annual range.