Unusual Options Activity

One trader is betting that shares of Applied Materials (AMAT) will soar in the next two days. That’s because over 6,100 contracts traded on Friday’s $63.50 calls, a 42-fold surge in volume. With shares currently trading around $61.50, the option is about 3.3 percent out-of-the-money. The option buyer paid about $0.30, or $30 per contract. While inexpensive, the option stands a good chance of expiring at zero come Friday. Shares of the chipmaker have traded as high as $70 twice this year, ...
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At least one trader is betting on a bounce higher in airline manufacturer Boeing (BA) this month. The October 23rd $187.50 calls just saw 1,188 contracts trade. That’s a nine-fold rise in volume over the prior open interest. Shares trade around $171, so would need to rally about 10 percent in the next 17 days for the trade to move in-the-money. That’s no small feat, but shares of the company have been volatile enough that it could happen. The option trader paid ...
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The energy space continues to remain out of favor as demand remains low. Traders remain bearish, as indicated by the surge in buying in the January 2021 $17.50 puts on Royal Dutch Shell (RDS.A). Over 1,780 contracts traded on Friday, a 15-fold rise in volume. The oil giant’s shares are near $24, so the put buyer needs shares to drop over 25 percent in the next 102 days before the option expires for the trade to move in-the-money. The Anglo-Dutch oil giant ...
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Traders are betting on a rally in tech giant Microsoft (MSFT). The November 6th $230 calls, expiring in just over a month, saw a huge uptick in volume. Over 7,000 contracts traded, a 30-fold rise in volume from the prior open interest. With shares around $212, the $230 calls represent just under a 10 percent rally in shares from here in the next month, at least if the option trade is to move in-the-money. The buyer paid $3.33 per contract. With a ...
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Traders are betting on shares of Bed Bath & Beyond (BBBY) to move higher into the holiday season. The December 18th, 2020 $15 calls saw over 3,100 contracts trade, about a 27-fold rise in trading compared to the prior open volume. With 78 days to go, and with shares currently just over $15, this option is at-the-money, and should move penny-for-penny higher with shares. The option trader paid about $2.50 per contract, so in order for the buyer to profit at expiration, ...
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Traders are betting on a big move lower in Alibaba (BABA). Over 2,300 contracts traded against an open interest of 133, making for a 19-fold rise in volume. The contracts were for June 2022 $275 puts. With shares trading around $278, these at-the-money puts should move penny-for-penny higher as the stock goes lower. The option has 625 days until expiration. This kind of big, at-the-money, long-dated bet suggests someone expects a drop in the price soon, offering a relatively safe way to ...
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Traders are betting on a big move higher in The Gap (GPS). Over 7,700 contracts traded on the December 2020 $19 calls on shares. That’s a 55-fold rise in volume compared to the prior open interest of 141 contracts. Shares of The Gap trade at $17, so shares need to rise a bit over 10 percent in the next 80 days to move in-the-money. The option traded for $0.67, or $67 per contract, on average. Shares of the retail apparel firm have ...
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Traders are betting on a big move higher in GoPro (GPRO). The July 2021 $5 calls just saw over 2,500 contracts trade, a 24-fold surge in volume over the prior open interest of near 100 contracts. Expiring in 291 days, the bet is that shares will rally over 10 percent from their current price near $4.25. The call buyer paid about $0.84, or $84 per contract, on average. Shares of the "selfie stick" company will need to move over 25 percent higher ...
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