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Saturday, December 2, 2023

BP Options Active After Q3 Earnings Report

BP – BP Plc – Shares in Europe’s third-largest oil company surged to a new 52-week high on Tuesday, rallying more than 4.5% to $45.76, after the company reported third-quarter earnings that declined less than expected and increased its dividend to $0.095 a share.

Options traders looking for shares in BP to continue to climb this week picked up Nov 01 ’13 $46 strike calls. As of the time of this writing, more than 3,100 of the $46 weekly calls have changed hands against open interest of 325 contracts. Most of the calls appear to have been purchased for an average premium of $0.08 apiece. Buyers of the $46 calls expiring at the end of the week may profit if shares in BP settle above the breakeven price of $46.08.

Overall options volume on BP is nearing 25,000 contracts as of 11:05 a.m. ET, which is roughly 90% of the stock’s average daily options volume of 27,300 contracts. Trading in calls is outpacing that of puts, with the call/put ratio on the stock hovering around 4.0 this morning. 

YHOO – Yahoo! Inc. – Traders positioning for shares in Yahoo to continue to climb in the near term snapped up weekly call options on the stock straight out of the gate this morning, amid a more than 5.1% rally in the price of the underlying to $34.00. Shares are rallying on an upgrade to Outperform with a target share price of $40.00 at Bernstein Research.

Options players looking for the stock to extend gains snapped up Nov 01 ’13 $34 strike calls in the early going, with more than 3,900 contracts traded against open interest of 508 contracts in the first hour of the session. Time and sales data suggests most of the $34 weekly calls were purchased for an average premium of $0.39 each. Traders long the $34 strike call options stand ready to profit at expiration in the event that YHOO shares settle above the average breakeven point at $34.39. The Nov 01 ’13 $34.5 strike calls also attracted buyers, with more than 600 lots purchased at an average premium of $0.24 apiece during morning trading.

Fresh interest in $35 strike weekly call options this morning suggests some traders are positioning for shares in Yahoo to potentially rally to fresh 52-week highs ahead of the weekend. It looks like traders purchased more than 1,200 of the Nov 01 ’13 $35 strike calls at a premium of $0.12 each. Buyers of the $35 strike calls may profit at expiration if shares in Yahoo rally 3.3% over today’s high of $34.00 to top a breakeven price and fresh 52-week high of $35.12. 

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