Weekend Unusual Option Flow Summary – GPS (Gap), ESTC, AMBA, IQ, SHAK, DIS

What’s up fellow options gamblers, this is Swaggy with the weekend Unusual Options Activity post. Caught a few names this week getting some option flow attention, lets get started.

GPS – Gap Inc

Gap has been on a huge run recently, this week saw some pretty bullish activity in CALL flow coming through. Looks like many blocks of calls between 2k-10k contracts with October to December expiration expects the stock to continue on it’s run. Kanye has recently signed a clothing deal with Gap which has brought life back to the stock.

ESTC – Elastic Inc

ESTC saw an increase in option activity this week after reporting earnings. The stock has had a 20% rise in the last 3 weeks. Looks like some of the flow could be some protection buying, locking in profits, as well as some bullish flow with the $125 strike expecting the stock to continue it’s run. The stock is currently trading at $110. The flow was tough to read, but interesting to take note of with an uptick in volume here.

AMBA – Ambarella Inc

Somewhat of a low-key ticker getting some attention recently is AMBA (Ambarella). Pretty one-sided call flow coming through sweeping a range of strikes out the money. Most in a pretty short-term time frame (September 18). Looks like AMBA is set to report earnings this week and these look to be an earnings play.

IQ – iQIYI Inc.

I’ve heard IQ is like the Netflix/Youtube combination in China, not exactly sure. Looks like the September expiration had some solid flow roll through skewed to the bullish side. There was also bullish activity happening two weeks ago, the stock consolidated in a tight range for those 2 weeks and just shot up over 10% this week. Looks like most of this recent bullish flow came through AFTER the stock shot up and they are trying to build a momentum position.

SHAK – Shake Shack Inc.

Some bearish activity in Shake Shack last week. The stock is close to it’s pre-covid high, but still down about 40% from ATH back in the end of 2019. Some bearish activity rolled through this week, with a heavy put-buying in October 16 PUT contracts. 2,700 contracts were opened for a $1.6m position. I don’t typically like to follow bearish activity because stonks usually go up, but thought this was noteworthy. Earnings aren’t until November, so this could be potentially a second wave/shutdown play as we get into the fall months.

DIS – Walt Disney Company

DIS saw some OTM call sweeps being bought up last week. Here’s the intraday sentiment outlook as the daily doesn’t do it justice. Most of these calls were bought OTM with a few being pretty far OTM. In my opinion DIS will struggle with revenues in our post-covid world, but I’ve learned from experience to not FK with the mouse. Most of these plays were 3-9 months out with April 2021 expiration. This is more of a long-term timeframe expecting the stock to break through pre-covid all-time-highs.