I noticed some unusual options activity today that caught my attention.
W – Wayfair Inc
Player opened up a synthetic long position, where they buy the call and sell the put at the same strike. This kind of strategy ultimately has the same risk as going long on shares. What they did: They bought 2,600 July 17 calls at the $205 strike and sold 2,600 July puts at the $205 strike. Total dollars involved in the transaction was approximately $6.8 million in premium, which is quite a large position! I will be interested to follow the stock as those are relatively short-term expirations and they are expecting a big move up.
LULU – Lululemon Inc
Minutes before the closing bell a player purchased 1,000 call contracts at the $305 strike for July 2nd expiration and a total premium of about 100k. Shortly after the close LULU announced they are acquiring fitness startup MIRROR. LULU is up 3% after-hours. Very cool and very legal *inserts sunglasses emoji*. Another interesting thing of note in LULU today was that most of the sentiment/flow seemed to be bearish.
Other names that had a higher volume in activity included: FB, MSFT, BA, ROKU.
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That’s all the notable action for today. Enjoy