High volume options activity in BABA, FB, NIO, SQ, TWLO, and UBER

It was a high volume day as markets ripped higher at the open and began the slow fade. On my platform I didn’t come across anything overly unusual per say, but I did see high volume activity happening. I’ll break it down.

BABA – Alibaba Group Holdings

Daily sentiment for BABA was very bullish as the stock went on a hugely bullish run. Today we saw a lot of call buying in September expiration, nearly 50k calls traded for that expiration. Players have been accumulating calls the last couple weeks. BABA has seen limited upside in the recent rally due to the suspicions of Chinese stonks getting de-listed. In my opinion BABA still has room to run up even more.

FB – Facebook Inc

Today we saw some short-term call buying going into Facebook’s meeting tomorrow that will include Zuck. 6,000 calls were traded at the $235 and $240 strike in two blocks expiring this Friday. Premium paid for those trades was approximately $2.5 million. Worries of Facebook clients withdrawing ad spending has caused the stock to lag behind big tech names in the rally. Momentum looks to be picking back up. Can’t cuck the ZUCK.

NIO – Nio Inc

Players looking to ride momentum in NIO after the stock has caught fire. Bullish flow outweighed bearish flow 2:1 in todays options activity.

SQ – Square Inc

Today I caught to big plays in SQ that were slightly unusual. Players opened short call position at the $100 and $90 strikes with September expiration. These long dated short calls is a pretty bearish position suggestion that perhaps the stock is over-extended after it’s 100% return over the last 3 months.

TWLO – Twilio Inc

Twilio saw some in-the-money call buying today in the January 2021 expiration. Both trades were only approximately 200 contracts in volume, so not very unusual in that sense. Because they were in-the-money the contracts were fairly expensive. The trades were at the $190 and $230 strikes with premiums paid of approximately $1.1 million and $700k, respectively.

UBER – Uber Technologies

Today I came across a slew of long-dated out-the-money call buying in UBER. Each block was about 1.5k contracts and bullish sentiment out-weighed bearish sentiment about 4 to 1. This comes off the news of UBER acquiring Postmates. Perhaps players are seeing an opportunity here as UBER begins to monopolize the delivery space. This was the most interesting play of the day today, I’ll be keeping this on my watchlist.

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