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How can you get a quick read on the market’s sentiment of a stock? Many analysts like to look at changes in the put/call ratio - when the put/call ratio rises, it indicates that options traders have become more bearish on a stock’s short-term outlook, and conversely when it falls.

We analyzed the tech sector for stocks that have seen very bearish sentiment from options traders over the last ten trading days. The stocks listed below have seen significant increases in put/call ratio over that time period.

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.‬


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 think these options traders’ predictions will come true? Use this list as a starting-off point for your own analysis.

List sorted by increase in put/call ratio.

1. DragonWave Inc. (DRWI):
Provides wireless Ethernet equipment for emerging Internet protocol networks worldwide. Market cap of $119.74M. Put/Call ratio changed from 0.07 to 0.97 between 09/30/11 and 10/13/11, a change of 1285.71%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). The stock is a short squeeze candidate, with a short float at 7.65% (equivalent to 7.91 days of average volume). The stock has had a couple of great days, gaining 13.09% over the last week. The stock has performed poorly over the last month, losing 20.33%.

2. Level 3 Communications Inc. (LVLT):
Engages in the communications business in North America and Europe. Market cap of $2.94B. Put/Call ratio changed from 0.11 to 0.69 between 09/30/11 and 10/13/11, a change of 527.27%. The stock is a short squeeze candidate, with a short float at 10.64% (equivalent to 6.43 days of average volume). The stock has gained 87.5% over the last year.

3. Bruker Corporation (BRKR):
Designs, manufactures, services, and markets life science and materials research systems. Market cap of $2.29B. Put/Call ratio changed from 2.25 to 8.03 between 09/30/11 and 10/13/11, a change of 256.89%. The stock has had a couple of great days, gaining 5.65% over the last week.

4. PAETEC Holding Corp. (PAET):
Provides integrated broadband communications services to business and end-user customers primarily in the United States. Market cap of $814.13M. Put/Call ratio changed from 2.0 to 6.73 between 09/30/11 and 10/13/11, a change of 236.50%. The stock has gained 30.91% over the last year.

5. ASML Holding NV (ASML):
Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap of $17.39B. Put/Call ratio changed from 1.32 to 3.37 between 09/30/11 and 10/13/11, a change of 155.30%. The stock has had a couple of great days, gaining 10.95% over the last week.

6. KLA-Tencor Corporation (KLAC):
Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $7.30B. Put/Call ratio changed from 0.68 to 1.55 between 09/30/11 and 10/13/11, a change of 127.94%. The stock has had a couple of great days, gaining 5.56% over the last week.

7. OmniVision Technologies Inc. (OVTI):
Designs, develops, and markets semiconductor image-sensor devices. Market cap of $950.78M. Put/Call ratio changed from 0.55 to 1.13 between 09/30/11 and 10/13/11, a change of 105.45%. The stock has performed poorly over the last month, losing 11.54%.

8. Iridium Communications Inc. (IRDM):
Provides mobile voice and data communications services through satellites to businesses, the U. Market cap of $439.26M. Put/Call ratio changed from 0.63 to 1.24 between 09/30/11 and 10/13/11, a change of 96.83%. The stock is a short squeeze candidate, with a short float at 19.94% (equivalent to 18.59 days of average volume). The stock has had a couple of great days, gaining 8.7% over the last week. The stock has performed poorly over the last month, losing 15.37%.

9. Cray Inc. (CRAY):
Engages in the design, development, manufacture, marketing, and service of high-performance computing (HPC) systems, known as supercomputers. Market cap of $227.11M. Put/Call ratio changed from 0.22 to 0.41 between 09/30/11 and 10/13/11, a change of 86.36%. The stock has had a couple of great days, gaining 7.56% over the last week.

10. Canadian Solar Inc. (CSIQ):
Engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. Market cap of $164.98M. Put/Call ratio changed from 0.99 to 1.74 between 09/30/11 and 10/13/11, a change of 75.76%. This is a risky stock that is significantly more volatile than the overall market (beta = 3.31). The stock is a short squeeze candidate, with a short float at 19.77% (equivalent to 7.38 days of average volume). The stock has had a couple of great days, gaining 11.8% over the last week. The stock has performed poorly over the last month, losing 25.25%.

11. City Telecom HK Ltd. (CTEL): Telecom Services Industry. Market cap of $358.59M. Put/Call ratio changed from 2.67 to 4.0 between 09/30/11 and 10/13/11, a change of 49.81%. The stock has lost 26.21% over the last year.

12. NIC Inc. (EGOV):
Provides eGovernment services that enable governments use the Internet to provide various services to businesses and citizens in the United States. Market cap of $788.31M. Put/Call ratio changed from 0.27 to 0.39 between 09/30/11 and 10/13/11, a change of 44.44%. The stock has had a couple of great days, gaining 6.4% over the last week.

13. LogMeIn, Inc. (LOGM):
Provides on-demand, remote-connectivity solutions to small and medium-sized businesses, information technology (IT) service providers, and consumers in the United States and internationally. Market cap of $887.66M. Put/Call ratio changed from 0.93 to 1.31 between 09/30/11 and 10/13/11, a change of 40.86%. The stock is a short squeeze candidate, with a short float at 11.91% (equivalent to 7.3 days of average volume). The stock has had a couple of great days, gaining 9.82% over the last week.

14. NeuStar, Inc. (NSR):
Provides technology and directory services to its communications service provider (carrier) and non-carrier, commercial business customers primarily in North America, Europe, and the Middle East. Market cap of $2.24B. Put/Call ratio changed from 1.62 to 2.03 between 09/30/11 and 10/13/11, a change of 25.31%. Exhibiting strong upside momentum--currently trading 16.43% above its SMA20, 22.59% above its SMA50, and 18.13% above its SMA200. The stock has had a couple of great days, gaining 14.83% over the last week.

15. IXYS Corp. (IXYS):
Engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits (ICs), application specific integrated circuits (ASICs), and systems and radio frequency semiconductors. Market cap of $416.46M. Put/Call ratio changed from 0.24 to 0.30 between 09/30/11 and 10/13/11, a change of 25%. The stock is a short squeeze candidate, with a short float at 5.34% (equivalent to 9.21 days of average volume). The stock has had a couple of great days, gaining 18.39% over the last week.

*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: 15 Tech Stocks With Bearish Options Sentiment