Options traders can provide helpful insights for the current market sentiment on a stock. Because put and call options indicate clear predictions on the direction that investors believe a stock is headed, the put/call ratio is a popular indicator for sentiment.
We ran a screen on the S&P 500 for stocks rallying above their 20-day, 50-day, and 200-day moving averages. We screened these stocks for those with negative sentiment from options traders, with significant increases 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 think options traders are right to be negative on these names? Use this list as a starting-off point for your own analysis.
List sorted by increase in put/call ratio.
1. Ameren Corporation (AEE): Operates as a public utility company in Missouri and Illinois, the United States. Market cap of $7.66B. The stock is currently trading at 3.19% above its 20-Day SMA, 5.43% above its 50-Day SMA, and 11.55% above its 200-Day SMA. Put/Call ratio changed from 0.22 to 0.91 between 10/19/11 to 11/01/11, a change of 313.64%. The stock has had a good month, gaining 10.61%.
2. Constellation Energy Group, Inc. (CEG): Operates as an energy company in the United States and Canada. Market cap of $7.92B. The stock is currently trading at 3.70% above its 20-Day SMA, 4.04% above its 50-Day SMA, and 12.34% above its 200-Day SMA. Put/Call ratio changed from 0.77 to 1.35 between 10/19/11 to 11/01/11, a change of 75.32%. The stock has gained 33.72% over the last year.
3. AmerisourceBergen Corporation (ABC): Provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers in the United States, the United Kingdom, and Canada. Market cap of $10.74B. The stock is currently trading at 2.89% above its 20-Day SMA, 3.22% above its 50-Day SMA, and 2.17% above its 200-Day SMA. Put/Call ratio changed from 0.49 to 0.76 between 10/19/11 to 11/01/11, a change of 55.10%. The stock has had a good month, gaining 11%.
*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.