The Charles Schwab Corp (SCHW) stock has tumbled 11% in the last month, trading just below $51 on Friday, April 14 ($50.72). This makes its put options very popular with investors. They are shorting near-term out-of-the-money (OTM) puts in an attractive income opportunity. In effect, this is a bullish trade on SCHW stock.
On March 15, 2023, I wrote about a large investor with an unusual options trade in Schwab stock: “Unusual Call Option Activity In Schwab Stock Shows Bullish Investor Position.” In that article, I showed that a large investor had likely shorted OTM calls at the $80 strike price for expiration on May 19.
