Solar Stock Drawing Attention in the Options Pits

RUN is down 19.2% in 2022

Sunrun Inc (NASDAQ:RUN) is down 5% at $27.69 at last glance, eyeing its third-straight drop of over 4%. Though the negative price action has RUN dropping below recent support at the $28 level, the stock’s 180-day moving average lingers below as support. Year-to-date, the solar name is down 19.2%. 

Options traders have been targeting RUN recently. The stock landed on Schaeffer’s Senior Quantitative Analyst Rocky White’s list of S&P 400 names that have attracted the most options volume over the past 10 days. In that time period, 54,411 calls and 67,690 puts exchanged hands. The most popular contract during this time was the December 28 put, followed by the December 30 call.  

Plus, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RUN’s put/call ratio over these past two weeks ranks higher than 99% of readings in its annual range. 

Options look like a good way to go at the moment, too, per the security’s Schaeffer’s Volatility Scorecard (SVS), which sits at a relatively high 83 out of 100. This means the stock has exceeded option traders’ volatility expectations during the past year.

Meanwhile, it’s also worth noting that short interest represents 14.2% of the stock’s available float. It would take nearly four days to buy back these bearish bets, at Sunrun stock’s average pace of trading. 

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