The following is a list of overbought stocks, as defined by the Relative Strength, or RSI(14), indicator. To control for quality, we only focus on stocks with market caps north of $300M.
All of these stocks have very high Put/Call ratios, meaning that put option open interest is much larger than call option open interest. In other words, options traders expect these stocks to reverse over the next few weeks.
RSI(14) values sourced from Finviz, options data sourced from Schaeffer's. Full analysis below.
The list has been sorted by the Put/Call ratio.
1. International Assets Holding Corporation (IAAC): Asset Management Industry. Market cap of $313M. RSI(14) at 70.92. Call open interest at 118 contracts vs. put open interest at 1,394 contracts (Put/Call ratio at 11.81). The stock has gained 6.93% over the last year.
2. Platinum Underwriters Holdings Ltd. (PTP): Property & Casualty Insurance Industry. Market cap of $1,766B. RSI(14) at 74.88. Call open interest at 665 contracts vs. put open interest at 4,099 contracts (Put/Call ratio at 6.16). The stock has gained 23.89% over the last year.
3. Post Properties Inc. (PPS): Retail REIT. Market cap of $1,385B. RSI(14) at 71.3. Call open interest at 329 contracts vs. put open interest at 1,615 contracts (Put/Call ratio at 4.91). The stock has gained 56.5% over the last year.
4. Credicorp Ltd. (BAP): Money Center Banks Industry. Market cap of $9,137B. RSI(14) at 72.4. Call open interest at 491 contracts vs. put open interest at 2,297 contracts (Put/Call ratio at 4.68). The stock has gained 56.08% over the last year.
5. Altria Group Inc. (MO): Cigarettes Industry. Market cap of $49,348B. RSI(14) at 74.72. Call open interest at 19,035 contracts vs. put open interest at 85,783 contracts (Put/Call ratio at 4.51). The stock has gained 41.37% over the last year.
6. EZchip Semiconductor Ltd. (EZCH): Semiconductor Equipment & Materials Industry. Market cap of $647M. RSI(14) at 72.46. Call open interest at 6,219 contracts vs. put open interest at 22,501 contracts (Put/Call ratio at 3.62). The stock has gained 115.01% over the last year.
7. National Financial Partners Corp. (NFP): Insurance Brokers Industry. Market cap of $542M. RSI(14) at 71.36. Call open interest at 862 contracts vs. put open interest at 2,463 contracts (Put/Call ratio at 2.86). The stock has gained 61.22% over the last year.
8. Banco Santander-Chile (SAN): Money Center Banks Industry. Market cap of $17,936B. RSI(14) at 74.7. Call open interest at 326 contracts vs. put open interest at 899 contracts (Put/Call ratio at 2.76). The stock has gained 102.23% over the last year.
9. Tanzanian Royalty Exploration Corp. (TRE): Gold Industry. Market cap of $608M. RSI(14) at 81.21. Call open interest at 8,871 contracts vs. put open interest at 24,371 contracts (Put/Call ratio at 2.75). The stock has gained 103.99% over the last year.
10. Aruba Networks, Inc. (ARUN): Computer Peripherals Industry. Market cap of $1,916B. RSI(14) at 73.87. Call open interest at 30,437 contracts vs. put open interest at 71,081 contracts (Put/Call ratio at 2.34). The stock has gained 119.4% over the last year.
11. Pre-Paid Legal Services, Inc. (PPD): Personal Services Industry. Market cap of $614M. RSI(14) at 78.8. Call open interest at 958 contracts vs. put open interest at 2,037 contracts (Put/Call ratio at 2.13). The stock has gained 26.4% over the last year.
12. QLT Inc. (QLTI): Biotechnology Industry. Market cap of $334M. RSI(14) at 71.95. Call open interest at 639 contracts vs. put open interest at 1,319 contracts (Put/Call ratio at 2.06). The stock has gained 44.12% over the last year.
13. Cadence Design Systems Inc. (CDNS): Technical & System Software Industry. Market cap of $2,058B. RSI(14) at 70.18. Call open interest at 6,122 contracts vs. put open interest at 12,572 contracts (Put/Call ratio at 2.05). The stock has gained 9.34% over the last year.
14. Coca-Cola FEMSA S.A.B de C.V. (KOF): Soft Drinks Industry. Market cap of $14,850B. RSI(14) at 76.47. Call open interest at 152 contracts vs. put open interest at 301 contracts (Put/Call ratio at 1.98). The stock has gained 80.44% over the last year.
Disclosure: No positions
