Contrarian Ideas: 15 European Stocks With Rapidly Rising Put/Call Ratios

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 |  Includes: ACL, AIXG, AMFW, BCS, DB, DRYS, DSX, ESV, IR, IRE, NE, NVS, SHPG, TYC, WPPGY
by: Kapitall

The following is a list of European stocks with Put/Call ratios at the upper end of their annual ranges. All of these stocks have seen a recent increase in the Put/Call ratio, which is based on open interest of option contracts.

This list might offer an interesting starting point to investors looking for exposure to the European economy. Especially when you consider that the Put/Call ratio is often viewed as a contrary indicator when it reaches extreme highs or lows.

In other words, because the stocks mentioned below have a high number of open put option positions relative to call option positions, contrarians would think most of the stocks mentioned below are set for a rally. Do you agree?

Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/12 - 1/26)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


The list has been sorted by the change in the Put/Call ratio. (A reminder: All trends described occur between 1/12 - 1/26)

1. WPP plc (NASDAQ:WPPGY): United Kingdom. Advertising Agencies Industry. Market cap of $15.59B. Current Put/Call ratio at 2.48 vs. a previous ratio of 0.95 (+161.05% change). Short float at 0.03%, which implies a short ratio of 1.19 days. The stock has gained 33.71% over the last year.

2. Alcon Inc. (NYSE:ACL):
Switzerland. Medical Instruments & Supplies Industry. Market cap of $49.86B. Current Put/Call ratio at 1.20 vs. a previous ratio of 0.48 (+150.00% change). Short float at 1.88%, which implies a short ratio of 1.13 days. The stock has gained 7.55% over the last year.

3. Novartis AG (NYSE:NVS):
Switzerland. Drug Manufacturer. Market cap of $132.34B. Current Put/Call ratio at 2.15 vs. a previous ratio of 1.06 (+102.83% change). Short float at 0.84%, which implies a short ratio of 4.06 days. The stock has gained 10.26% over the last year.

4. Deutsche Bank AG (NYSE:DB): Germany. Foreign Money Center Banks Industry. Market cap of $37.03B. Current Put/Call ratio at 2.44 vs. a previous ratio of 1.24 (+96.77% change). Short float at 0.47%, which implies a short ratio of 2.64 days. The stock has lost -2.85% over the last year.

5. Aixtron AG (NASDAQ:AIXG): Germany. Diversified Machinery Industry. Market cap of $4.09B. Current Put/Call ratio at 3.34 vs. a previous ratio of 1.89 (+76.72% change). Short float at 4.65%, which implies a short ratio of 12.12 days. The stock has gained 34.83% over the last year.

6. Barclays PLC (NYSE:BCS):
United Kingdom. Foreign Money Center Banks Industry. Market cap of $57.17B. Current Put/Call ratio at 4.64 vs. a previous ratio of 3.12 (+48.72% change). Short float at 0.28%, which implies a short ratio of 2.98 days. The stock has gained 9.52% over the last year.

7. Noble Corp. (NYSE:NE): Switzerland. Oil & Gas Drilling & Exploration Industry. Market cap of $9.35B. Current Put/Call ratio at 0.98 vs. a previous ratio of 0.66 (+48.48% change). Short float at 3.65%, which implies a short ratio of 1.73 days. The stock has lost -10.44% over the last year.

8. Diana Shipping Inc. (NYSE:DSX):
Greece. Shipping Industry. Market cap of $949.8M. Current Put/Call ratio at 1.10 vs. a previous ratio of 0.77 (+42.86% change). Short float at 1.46%, which implies a short ratio of 1.03 days. The stock has lost -20.12% over the last year.

9. DryShips, Inc. (NASDAQ:DRYS):
Greece. Shipping Industry. Market cap of $1.4B. Current Put/Call ratio at 0.73 vs. a previous ratio of 0.52 (+40.38% change). Short float at 7.8%, which implies a short ratio of 1.12 days. The stock has lost -20.13% over the last year.

10. Ingersoll-Rand Plc (NYSE:IR):
Ireland. Diversified Machinery Industry. Market cap of $14.98B. Current Put/Call ratio at 0.91 vs. a previous ratio of 0.68 (+33.82% change). Short float at 7.14%, which implies a short ratio of 5 days. The stock has gained 34.03% over the last year.

11. Foster Wheeler AG (FWLT):
Switzerland. Heavy Construction Industry. Market cap of $4.48B. Current Put/Call ratio at 0.98 vs. a previous ratio of 0.75 (+30.67% change). Short float at 3.37%, which implies a short ratio of 1.56 days. The stock has gained 16.47% over the last year.

12. The Governor and Company of The Bank of Ireland (NYSE:IRE): Ireland. Foreign Regional Banks Industry. Market cap of $3.11B. Current Put/Call ratio at 0.73 vs. a previous ratio of 0.56 (+30.36% change). Short float at 0.08%, which implies a short ratio of 0.07 days. The stock has lost -71.02% over the last year.

13. Shire plc (SHPGY):
United Kingdom. Drug Manufacturer. Market cap of $14.95B. Current Put/Call ratio at 1.54 vs. a previous ratio of 1.20 (+28.33% change). Short float at 0.88%, which implies a short ratio of 3.36 days. The stock has gained 33.18% over the last year.

14. Ensco plc (NYSE:ESV): United Kingdom. Oil & Gas Drilling & Exploration Industry. Market cap of $7.42B. Current Put/Call ratio at 1.36 vs. a previous ratio of 1.07 (+27.10% change). Short float at 4.05%, which implies a short ratio of 4.12 days. The stock has gained 31.22% over the last year.

15. Tyco International Ltd. (NYSE:TYC):
Switzerland. Diversified Machinery Industry. Market cap of $21.36B. Current Put/Call ratio at 1.02 vs. a previous ratio of 0.92 (+10.87% change). Short float at 1.01%, which implies a short ratio of 1.23 days. The stock has gained 24.99% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.