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A helpful gauge of the market’s sentiment on a stock is the put/call ratio. When a stock’s put/call ratio falls, it indicates that fewer options traders are bearish on a company’s outlook.

We ran a screen on the 200 largest stocks by market cap for those that have seen a recent bearish change in sentiment from options traders, with a significant increase in put/call over the last ten trading days.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you agree with options traders on these names? Use this list as a starting-off point for your own analysis.

List sorted by increase in put/call.

1. ABB Ltd. (NYSE:ABB): Provides power and automation technologies for utility and industrial customers worldwide. Market cap of $39.39B. Open interest Put/Call ratio changed from 0.47 to 1.94 between 09/21/11 to 10/04/11, a change of 312.77%. The stock has lost 19.91% over the last year.

2. Allergan Inc. (NYSE:AGN):
Operates as a multi-specialty healthcare company primarily in the United States, Europe, Latin America, and the Asia Pacific. Market cap of $24.92B. Open interest Put/Call ratio changed from 0.83 to 1.49 between 09/21/11 to 10/04/11, a change of 79.52%. The stock has gained 22.38% over the last year.

3. Dominion Resources, Inc. (NYSE:D):
Engages in producing and transporting energy in the United States. Market cap of $28.51B. Open interest Put/Call ratio changed from 1.15 to 1.50 between 09/21/11 to 10/04/11, a change of 30.43%. The stock has gained 16.08% 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: 3 Mega-Cap Stocks Options Traders Just Turned Bearish On