Popular Cloud Stock Pick for Options Bears
Subscribers to Schaeffer's Weekend Trader options recommendation service received this SNOW commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
An unwinding of optimism in the options pits could create even more headwinds. This is per SNOW’s 50-day call/put volume ratio of 2.44 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). That ratio is already trending lower and is far from washout levels.
What’s more, the security’s Schaeffer's Volatility Scorecard (SVS) comes in at an elevated 71 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.
Our recommended May put has a leverage ratio of 4.8 and will double on a 17.4% drop in the underlying equity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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