Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Some investors view the put/call ratio as a contrarian indicator – when it reaches extreme levels, it may indicate that a turnaround is imminent.

Here we report a list of large cap stocks with steep increases in put/call ratio over the past two weeks, to the upper levels of their annual p/c range.



A contrarian investor might predict that these stocks are set to rally. What do you think? Use this list as a starting-off point for your own analysis.

List sorted by increase in put/call ratio over the last ten trading days.

1. China Unicom (Hong Kong) Limited (NYSE:CHU): Wireless Communications Industry. Market cap of $49.55B. Put/Call ratio has increased 152.53% over the last ten trading days (from 0.99 to 2.5, currently placed at 91% of the annual p/c range). The stock has gained 76.43% over the last year.



2. Johnson & Johnson (NYSE:JNJ):
Drug Manufacturers Industry. Market cap of $179.57B. Put/Call ratio has increased 92.22% over the last ten trading days (from 0.9 to 1.73, currently placed at 100% of the annual p/c range). The stock offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.48%, current ratio at 2.05, and quick ratio at 1.79. The stock has gained 14.01% over the last year.



3. Fomento Econ (NYSE:FMX): Beverages Industry. Market cap of $109.99B. Put/Call ratio has increased 72.46% over the last ten trading days (from 1.38 to 2.38, currently placed at 99% of the annual p/c range). The stock has gained 42.94% over the last year.



4. PetroChina Co. Ltd. (NYSE:PTR): Major Integrated Oil & Gas Industry. Market cap of $247.81B. Put/Call ratio has increased 25.44% over the last ten trading days (from 1.14 to 1.43, currently placed at 91% of the annual p/c range). The stock has gained 29.27% over the last year.

5. General Electric Co. (NYSE:GE): Conglomerates Industry. Market cap of $205.96B. Put/Call ratio has increased 25.29% over the last ten trading days (from 0.87 to 1.09, currently placed at 71% of the annual p/c range). The stock has gained 19.95% over the last year.

6. The Home Depot, Inc. (NYSE:HD): Home Improvement Stores Industry. Market cap of $57.83B. Put/Call ratio has increased 19.74% over the last ten trading days (from 0.76 to 0.91, currently placed at 73% of the annual p/c range). The stock has gained 7.93% over the last year.

7. Diageo plc (NYSE:DEO): Beverages Industry. Market cap of $51.61B. Put/Call ratio has increased 16.22% over the last ten trading days (from 0.74 to 0.86, currently placed at 71% of the annual p/c range). The stock has gained 38.91% over the last year.

8. ITUB: Foreign Money Center Banks Industry. Market cap of $102.25B. Put/Call ratio has increased 12.50% over the last ten trading days (from 1.28 to 1.44, currently placed at 72% of the annual p/c range). The stock has gained 21.31% over the last year.

9. Union Pacific Corporation (NYSE:UNP):
Railroads Industry. Market cap of $50.64B. Put/Call ratio has increased 10.79% over the last ten trading days (from 1.39 to 1.54, currently placed at 73% of the annual p/c range). The stock has gained 46.17% over the last year.

*Options data sourced from Schaeffer’s, all other data sourced from Finviz.

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

Source: 9 Large Caps With Extremely Bearish Options Sentiment