Puts are quickly becoming the options of choice on Chevron Corporation On Thursday, speculators on the International Securities Exchange (ISE) bought to open 3,102 puts on the oil major, compared to just 400 calls. The stock's single-day put/call volume ratio arrived at 7.76, as traders snapped up nearly eight times more puts than calls.

As a result, CVX's 10-day ISE put/call volume ratio now stands at 0.99, which ranks higher than 77.3% of comparable readings taken during the past 52 weeks. This elevated percentile rank suggests that option players have shown a greater appetite for bearish bets over their bullish counterparts only about 23% of the time.

In fact, CVX's Schaeffer's put/call open interest ratio (SOIR) has jumped to a lofty 1.41, with puts easily outnumbering calls among options set to expire within three months. This SOIR ranks in the 99th annual percentile, just one percentage point from an annual pessimistic peak. In other words, short-term option traders have rarely been more skeptically aligned.

However, the most popular front-month strike is the November 80 call, with open interest of 14,876 contracts. Meanwhile, the most heavily populated front-month put is the November 75 strike, with 10,164 contracts outstanding. With CVX trading near $76.57 at last check, all of these options will likely expire worthless at the end of today's session.

In the soon-to-be front-month December series, speculators continue to focus on the stock's 75-strike put. This option currently has 13,511 contracts in residence. Likewise, the 80 strike also holds sway as the site of peak call open interest for the December series, with 23,862 open positions. Judging by this configuration, both bullish and bearish speculators are expecting some significant movement from CVX during the short term.

Elsewhere, short interest on CVX has recently ticked higher. During the past month, the number of CVX shares sold short jumped by 7.8%, and these bearish bets now account for 0.9% of the equity's float. Just as option players are beginning to gravitate toward pessimistic positions, short sellers are also starting to ramp up their expectations for a downside move.

It's hard to blame investors for adopting a downbeat attitude toward CVX, as the equity has been sitting on the sidelines for most of the Dow's 2009 ascent. While the blue-chip barometer has added more than 17% year-to-date, CVX is up just 4.6% for the year.

The recent flood of put volume comes on the heels of CVX's most recent rejection from its 20-month moving average. This long-term trendline provided a ceiling for the shares last month, and the equity is continuing to stagnate beneath this former support level.

Since butting its head against this stubborn technical barrier, CVX has tumbled below support from its 10-day and 20-day moving averages. Currently, the stock is on track to finish its second consecutive session below these trendlines. However, the $75.50 neighborhood could provide a floor -- this area previously supported the shares throughout late October and early November.

In light of the equity's underperformance, the current increase in pessimism seems perfectly appropriate. Unfortunately for CVX, the stock could come under additional selling pressure as traders continue to migrate toward the bearish end of the sentiment spectrum.