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Speculators are favoring Motricity, Inc. (MOTR - 1.59) calls today, as nearly 4,200 of these options have been exchanged so far, representing 22 times the equity's expected intraday volume. More than 1,800 calls have been traded at the in-the-money February 1 strike -- the majority of them at the ask price, pointing to buyer-driven volume. Currently, this option holds peak call open interest of just 1,017 contracts, so it's safe to say that new positions are being opened in this session.
This affinity for calls over puts is an ongoing trend for MOTR. The Schaeffer's put/call open interest ratio (SOIR) stands at 0.20, conveying that calls outnumber puts by five to one among options expiring within three months. In fact, this ratio ranks in only the 6th percentile of its annual range, which indicates that short-term options players have been more call-heavy toward the stock just 6% of the time over the past year.
What's more, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) reveals a 10-day call/put volume ratio of 293.4, confirming that calls bought to open have outnumbered puts by a whopping 293 to one during the last two weeks. In fact, this ratio sits just four percentage points shy of a yearly acme, signaling that traders have been snapping up bullish options over bearish at an almost annual-high clip.
However, it's worth noting that while short interest on MOTR declined by 9.8% during the last two reporting periods, these bearish plays still make up a hefty 21.84% of the equity's float. This suggests that short sellers looking to hedge their bets may be contributing to some of the recent call volume -- particularly since MOTR has gained about 99% over the past three days. Either way, it would take almost seven days to cover these shorted shares, at the stock's average daily trading volume.
Examining MOTR's technical performance, the equity has gained a staggering 77% year-to-date, and has outperformed the broader S&P 500 Index (SPX) by roughly 37% during the past 20 sessions. On the charts, the stock is already on pace to finish the week atop its 20-week moving average, a feat not accomplished since January 2011.
At last look, MOTR is up about 24% to flirt with the $1.59 region.
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