Unusual Options Activity in BABA, TWTR, SNAP, FEYE, DDOG, JD

Markets ripped higher at the open, does it make sense? Probably not. Many companies are already at record valuations if we look at historical price to earnings. Regardless, stonks only go up. Here’s Swaggy with some summarized option flow and unusual options activity. Let’s get started so I can appreciate this bottle of red on a Wednesday night.

BABA – Alibaba Holdings

I mentioned this stock in my previous post. The two weeks leading up to it’s breakout there was some big call activity accumulating. The stock has exploded recently to new highs and nothing can stop it. Today was nothing unusual except the volume of calls that was being traded. For reference, Monday’s call flow was running at 20x average volume, today’s volume matched that and then some, truly remarkable stuff. My algorithm caught nearly $225 million in bullish options activity activity. Last week the average was $15-20 million. What gives? BABA had very strong earnings last Q and they just announced expansion in China. Overall China is the next super-power economic force next to the great USA.

TWTR – Twitter Inc

Twitter opened strong for the day on news that a subscription feature allowing users to host subscription services will soon be revealed. TWTR saw approximately $32 million in bullish flow, according to my tool going above and beyond any unusual flow leading up to that. Some of the bigger positions were in the millions of premium and between 5k-20k contracts a piece. BIG FLOW.

SNAP – Snap Inc

Option flow in SNAP was running at approximately 20x normal volume for the day. Rumors of Snap’s rival, TikTok, getting banned across the United States gave this stock a boost. I saw some bullish flow outweighed bearish flow by about 1.5 to 1.

FEYE – FireEye

I caught only 1 trade today in the FEYE ticker. Recently, this stock hasn’t seen too much action so this buy definitely stood out as unusually bullish. A player opened 3,700 July 31st calls at the $13 strike for $200k in premium. The strike price is approximately 8% OTM and they are gambling on a relatively big move to the upside in the short-term. I’ll be keeping my eye on this one and might get in on a dip tomorrow.

DDOG – Datadog Inc

Bullish flow just keeps coming in this thorough-bred ticker. The stock has already seen a meteoric rise of nearly 45% in the last 3 weeks. Today looks like call buyers continued the sweep in the $100/$105 strike prices. These are all short-term positions so could possibly the players closing previous positions and rolling out some of the profits in hopes to ride the momentum.

JD – JD.com

This ticker saw an absolutely colossal long call position opened today. 25k September call contracts opened for a roughly $40 million position. The strike price was about 20% in the money at the $50 strike (stock is now $65).