BUD is fresh off five-straight weekly losses
Anheuser-Busch Inbev SA (NYSE:BUD) is up 3.1% at $60.87 at last glance, after an upgrade from UBS to “buy” from “neutral.” The firm cited the company’s attractive cash flow potential driven by artificial intelligence (AI) productions and services.
This positive price action marks a rebound, as Anheuser-Busch stock has been falling on the charts since its May 17, two-year high of $67.49. The $67 level rejected the shares’ peak in 2022 and 2023 as well. Fresh off five consecutive weekly losses, the equity is down 5.7% since the start of the year. A short-term bounce could’ve already been in the cards, too, per BUD’s 14-day relative strength index (RSI) of 24.1, which sits in “oversold” territory.
Over in the options pits, overall options volume is running at four times the amount typically seen at this point. The June 49 put is the most popular, followed by the weekly 7/5 55-strike put, with new positions being sold to open at both.
Options traders have been much more bullish than usual amid the stock’s extended fall. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), both BUD’s 10-day call/put ratio of 24.22 and 50-day call/put ratio of 3.42 rank higher than all other readings from the past year.
These options are well-priced at the moment, too. BUD’s Schaeffer’s Volatility Index (SVI) of 19% ranks higher than 14% of readings from the past year, meaning options traders are pricing in low volatility expectations.