Unusual Option Flow Summary, week of October 12th: PFE, FSLY, FEYE, PENN, YELP

Swaggy’s back with his weekend unusual options activity post. Earnings season is just underway so volume will most likely begin to pick up. Here’s some plays I found this week.

PFE – Pfizer Inc

We all heard recently some of the companies working on vaccines had stalled out. PFE jumped on this news and some huge volume in calls were bought. We saw some pretty short-term (November calls) with strikes pretty far OTM being bought up across the board. That was all earlier in the week, interesting how the stock has shot up on positive vaccine news toward the end of the week. Hmmm.

FSLY – Fastly

This next activity spouted some controversy when I posted it to Twitter. Pre-earnings it looks like a player SOLD 7,000 December $135 strike calls for $11.5m premium, and BOUGHT 7,000 January 15/2021 $120 PUTS making absolute bank when the stock got crushed down 30% on earnings. Other activity looks like a player was looking for a bottom, by selling 7,000 $80 strike PUTS for Dec 18.

FEYE – FireEye

FireEye (FEYE) saw an uptick in call buying for next week’s expiration. As of now, it looks like they report on October 26th. Last earnings FEYE also saw some unusual activity and the stock rocketed upwards after the report. Perhaps this player is looking to ride some momentum as we close in on the earnings report date. Position was 15k CALLS at $14 strike for October 23.

PENN – Penn National Gaming

PENN’s got the Dave Portnoy/Barstool pump and will be one of the leaders in sports-betting. PENN has been seeing some upgrades all across the board the last several weeks and this week saw some unusual bullish option flow come through for November expiration. Over 3,000 long calls were bought at $60 strike and for $4m premium. Some PUT sellers also came through in the same expiration with over 1,000 PUTS sold. PENN reports earnings on the 28th of October.

YELP – Yelp!

I caught what looks to be a YELP earnings play when a player opened a BULLISH debit CALL spread for November 6 expiration (earnings on the 8th looks like). Player opened 3,000 long calls for $21 strike (4% OTM) and sold the $24 strike calls (20% OTM) capitalizing on some of the earnings IV. Pretty bullish earnings play for YELP.

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