The Latest Breaking News from SCHW

Today there is unusual activity in Charles Schwab Corp call options that are out-of-the-money. This highlights its value both to those shorting them and those who see SCHW stock rising.

Some of the best long-term investment stocks include companies that are in good financial standing, pay consistent dividends. and buy back their own stock.

One of the online broker’s put options had a volume of 15,344 on Wednesday, 108.82x its open interest. I can think of at least three reasons why that’s the case.

Investors who have shorted out-of-the-money puts in Charles Schwab stock have been making good money. SCHW stock is still cheap based on earnings, making this a good play for investors.

Investors in Charles Schwab stock have found that it is still cheap, as we discussed in recent articles. As a result, shorting its out-of-the-money puts has now become a very popular income play.

Charles Schwab produced slightly better earnings than expected on April 17, although revenue fell short. Its put options have had unusual options activity, providing unique income plays.

Yesterday, with SCHW trading at 55.55, the May put option with a strike price of 52.50 was trading around $1.20. Traders selling this put would receive $120 in option premium. In return for receiving this premium, they have an obligation to buy 100 shares of SCHW for $52.50.

Charles Schwab stock rose Monday after it beat Q1 earnings estimates. M&T Bank, State Street report results following March bank panic.

Charles Schwab stock has tumbled 11% in the last month, making its put options very popular with investors who are shorting near-term out-of-the-money puts in an attractive income play.