Ten Financial Stocks with Bearish Options Sentiment

12/21/2010 12:01 am EST

Focus: OPTIONS

Beginning with a universe of 120 financial stocks, we have examined the put/call ratios for each in order to uncover ten stocks, each one showing a large number of open put option positions relative to call option positions (i.e. bearish options market sentiment).

Options traders clearly expect these stocks to see losses over coming weeks—what do you think?

  1. Equity One Inc. (EQY): REIT industry. Market cap of $1.6 billion. Call open interest at 404 contracts versus put open interest at 3,591 contracts (put/call ratio at 8.89). Short float at 14.58%, which implies a short ratio of 11.11 days. The stock has gained 11.29% over the last year.

  2. MCG Capital Corporation (MCGC): Asset management industry. Market cap of $550.8 million. Call open interest at 1,438 contracts versus put open interest at 6,600 contracts (put/call ratio at 4.59). Short float at 2.62%, which implies a short ratio of 4.85 days. The stock has gained 90.98% over the last year.

  3. Essex Property Trust Inc. (ESS): REIT industry. Market cap of $3.45 billion. Call open interest at 758 contracts versus put open interest at 2,468 contracts (put/call ratio at 3.26). Short float at 9.06%, which implies a short ratio of 11.21 days. The stock has gained 37.1% over the last year.

  4. AmTrust Financial Services, Inc. (AFSI): Property and casualty insurance industry. Market cap of $1.04 billion. Call open interest at 371 contracts versus put open interest at 1,079 contracts (put/call ratio at 2.91). Short float at 7.12%, which implies a short ratio of 12.64 days. The stock has gained 52.26% over the last year.

  5. Mid-America Apartment Communities Inc. (MAA): REIT industry. Market cap of $2.13 billion. Call open interest at 1,657 contracts versus put open interest at 3,996 contracts (put/call ratio at 2.41). Short float at 5.54%, which implies a short ratio of 7.31 days. The stock has gained 37.98% over the last year.

  6. Digital Realty Trust Inc. (DLR): REIT industry. Market cap of $4.37 billion. Call open interest at 3,948 contracts versus put open interest at 8,885 contracts (put/call ratio at 2.25). Short float at 20.64%, which implies a short ratio of 11.8 days. The stock has gained 2.98% over the last year.

  7. Realty Income Corp. (O): REIT industry. Market cap of $3.75 billion. Call open interest at 4,263 contracts versus put open interest at 8,256 contracts (put/call ratio at 1.94). Short float at 10.3%, which implies a short ratio of 11.59 days. The stock has gained 33.27% over the last year.

  8. Umpqua Holdings Corporation (UMPQ): Regional banking industry. Market cap of $1.36 billion. Call open interest at 482 contracts versus put open interest at 887 contracts (put/call ratio at 1.84). Short float at 6.33%, which implies a short ratio of 11.13 days. The stock has lost -0.34% over the last year.

  9. Tower Group Inc. (TWGP): Property and casualty insurance industry. Market cap of $1.08 billion. Call open interest at 137 contracts versus put open interest at 242 contracts (put/call ratio at 1.77). Short float at 12.17%, which implies a short ratio of 16.5 days. The stock has gained 13.53% over the last year.

  10. Community Bank System Inc. (CBU): Regional banking industry. Market cap of $891.94 million. Call open interest at 403 contracts versus put open interest at 690 contracts (put/call ratio at 1.71). Short float at 13.52%, which implies a short ratio of 26.82 days. The stock has gained 48.98% over the last year.
By the Staff at Kapitall.com

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