Unusual Option Activity in AMZN, DDOG, BMY, PTON, and DXC July 1st, 2020.

Here’s some of the flow I that really caught my attention today and was on my watchlist.

BMY – Bristol Myers

Looks like player opened up a synthetic short position by selling July 17 calls for a credit of $190k, and player purchased July 17 puts for $3.1 million in premium. Each leg in the position was opened at the $62.5 strike. Essentially this position compares very closely to a short stock position. This option flow stood out as there is not normally large activity going through this stock.

DXC – DXC Technology

Saw something very interesting today in DXC. For a stock ticker that has relatively low option volume we saw an enormous position opened today. A player sold 93,000 August 21 calls at $17 strike for a credit of $16 million and opened 93,000 August 21 puts at $16 strike paying a premium of $18 million. The 93,000 volume on these options compares to the only 200 OI for the same strikes. DXC is a small cap stock with a market cap of only $4 billion. A trade of this size would be classified as extremely unusual.

AMZN – Amazon Inc

There wasn’t anything specifically unusual about any trades in AMZN. There was a lot of smaller long positions opened with near-term expiration for tomorrow or next week. Seems like a lot of players were riding the momentum throughout the day and also caused more buying pressure that pushed the stock up. AMZN had good momentum for most of the day and I wouldn’t be surprised if it was from the call activity.

Other tickers that had notable option flow that was skewed to the bullish side were DDOG (Datadog) and PTON (Peloton). Take a look at their option sentiment charts below.

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