Options traders are chiming in on ABNB
Airbnb Inc (NASDAQ:ABNB) is up 8% at $143.37 at last glance, after news that the stock will join the S&P 500 Index (SPX) later this month. On track for its sixth day of gains in the last seven, today’s pop has ABNB back above its 60-day moving average, with recent support at its 150-day trendline as well. Year-to-date, the equity is up 67.7%.
In the options pits so far today, 75,000 calls and 43,000 puts have been exchanged, which is already 2.8 times the average daily options volume. The weekly 9/8 145-strike call is the most popular, with new positions opening there.
This preference for calls is a shift from the past 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ABNB’s 50-day put/call volume ratio of 1.24 ranks in the 98th percentile of its annual range.
That said, options are well-priced at the moment. The stock’s Schaeffer’s Volatility Index (SVI) of 31% stands ranks in the lowest percentile of its annual range, implying that options players are pricing in low volatility expectations at the moment.