Unusual Option Activity – Week of June 22-26, 2020

Let’s have a look at some of the Unusual Option Activity for the week of June 22-26, 2020.

AMD – Advanced Micro Devices.

Let’s have a look at option flow for AMD. After seeing some bullish flow mid June looks like player sold to open 14,500 contracts in the July 16 expiration. This could very well be a big institution hedging a large position, but none-the-less a covered call of that size would be a bearish signal. AMD has taken a beating and is at recent lows.

DOCU – DocuSign

DOCU has seen an absolutely monstrous run-up the last several weeks. Big-time bullish option flow has been paving the way for this meteoric rise. June 25th we saw a player sell to open 1,400 calls, potentially opening a covered call and hedging their position. The calls were in the December expiration at $195 strike. The player collected $2.2 million in premium and should only cut into profits should the stock rise another 10% from here.

ERI – Eldorado Resorts

Earlier this month we saw some bullish call option activity in ERI. This week though we saw a player buy to open 4,000 Aug PUTS for $2.3m premium. The player might be betting on another COVID shutdown after the stock’s recent run-up.

FSLY – Fastly Inc

Fastly, along with other cloud/software companies, has been having huge uptick momentum. From the option flow we can see players opening sizable positions in September and August calls for approximately $1.75 million premium a piece. Players entering bullish positions expecting cloud and software to continue their strength into the fall.

LULU – Lululemon Athletica Inc

Earlier in the month there was some huge bullish flow rolling through LULU. The last several trading days has seen some bearish PUT buyers rolling in. The stock under-performed on it’s recent earnings release, but the stock is less than 10% off from all-time-highs.

NKLA – Nikola Corporation

This stock has by far been one of the most active with options activity. It’s been having parabolic moves in both directions. Option flow has been fairly neutral on the bullish/bearish sentiment. What’s remarkable to see is that there is $50-100 million value in trades per day for a stock of only that size.

ORCL – Oracle Corporation

Oracle corp has been seeing a bit more bullish sentiment than bearish. Recently a player bought to open 10,000+ July 1st calls at the $56 strike. The stock is currently trading at $54.18 and would need about a 3% move to get the position in the money by next week.

PTON – Peloton Interactive

PTON has been a popular covid play and the stock has been booming. We’ve been seeing predominately BULLish option flow. We can see multiple call option positions being opened recently with fairly high premium. This stock will be on our watchlist as players bet on the stock to continue it’s good performance into the fall.

SPOT – Spotify Technologies

Spotify stock was fairly inactive until big-time option flow started rolling in. Just before the stock took off to the upside we saw some very bullish flow roll through. The most notable position we traced was 600 August calls purchased for a premium of $4 million. The stock has already seen a huge jump in the price and we may see some positions being hedged as players lock in profits and roll out.

SQ – Square Inc

SQ has been a pretty popular name among option flow recently. We’ve been seeing a good mix of bullish/bearish sentiment slightly skewed to the bullish side. There’s been some notable positions of $1 million + in premium. From the chart we can see multiple call option positions being opened with expiration into the fall. This is a great stock to add to your watchlist.

Share Post:

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram
Share on email

Leave a Reply