TC Energy’s Put Option Trading Surge: A Red Flag for Investors?

TC Energy’s recent put option trading frenzy is a stark reminder that even the most seemingly stable energy companies can be vulnerable to market volatility. With a price-to-earnings ratio of 16.96 and a price-to-book ratio of 2.68, investors are right to question whether TC Energy’s stock is overvalued.

The company’s 52-week high of 71.12 CAD, reached on June 3, 2025, is a far cry from its 52-week low of 52.64 CAD, recorded on July 29, 2024. This significant price swing raises concerns about the company’s financial stability and ability to maintain its current valuation.

• Key statistics:
  • Price-to-earnings ratio: 16.96
  • Price-to-book ratio: 2.68
  • 52-week high: 71.12 CAD (June 3, 2025)
  • 52-week low: 52.64 CAD (July 29, 2024)
  • Last close price: 64.74 CAD

The surge in put option trading suggests that investors are hedging their bets against a potential decline in TC Energy’s stock price. This is a clear indication that the market is not as confident in the company’s prospects as its current valuation would suggest.

Investors would do well to take a closer look at TC Energy’s financials and consider the potential risks associated with its high valuation. With the market’s attention focused on the company’s put option trading activity, it’s clear that TC Energy’s stock is not as bulletproof as it may seem.