|Smart Money Action, LLC|
Options Activity Report for Wednesday January 22nd
The purpose of this report is to review today’s most significant options activity. The trades detailed in
this report will be added to the Trade Database. Open interest will be reviewed tomorrow morning to
ensure that trades are recorded accurately.
BHVN ($57.06) – Bullish Options Activity Ahead of Key Data
Biohaven has key data due in the first quarter of 2020. The company has phase 3 top-line data due for
their migraine – preventative in Q1. That data could be released any day now. Biohaven also has data
due soon for Troriluzole, treating generalized anxiety disorder. Wedbush initiated coverage on BHVN
late last year and placed a $75 price target on the stock. On 12/23, Piper Jaffray reiterated their
Overweight rating with a $100 price target.
Today, the February $65/$75 call spread is opening 2,000X for $2.60. Additionally, the February $70/$80
call spread is opening 4,300X. This follows repeat bullish activity over the last few weeks as traders
position for key data to be released…
Highlights of the Day
DOCU ($74.52) - looks like 2,500 March $75 calls bought earlier for $4.50. Around 2,900 of those same
calls were bought on 1/8. Nice setup here - shares pulled back to the rising 50-day MA and now looking
to continue higher.
ELAN ($32.03) - calls are hot today...
3,000 Feb $31 calls bought for $1.75
10,000 Feb $35 calls bought for $0.45
1,900 April $35 calls bought for $0.75
Large activity relative to the 29,472 contracts in total open interest. IV is spiking today and seeing heavy
volume of shares trading.
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FB ($221.53) - 4,500 March $225 calls bought for $8.40. Facebook has been trading higher in a channel
and has seen notable call buying in the last 2 months. Earnings on 1/29 and shares have closed higher 4
out of the last 5 reports.
FIS ($148.86) - a position is rolling up as 2,300 April $140 calls close for $11.90 and 4,700 April $155 calls
are bought for $3.40. Earnings on 2/13 and shares have closed higher 4 of the last 5 reports. Strong
breakout on weekly chart recently. IT services & software names trading well today.
INTC ($62.29) - 1,500 Jan 2021 $62.50 puts sold to open for $6.45 with IV falling. Now seeing 11,000
April $62.50 calls bought for $2.72 while 11,000 Feb $60 calls close for $3.40. Bullish trade ahead of
earnings tomorrow afternoon. This follows bullish activity over the last month in Intel.
JMIA ($8.15) - some Feb calls are active again today as 2,700 Feb $9 calls are bought for $0.90 and 7,000
Feb $10 calls are bought for $0.55. Shares moving higher again today, the 'Amazon of Africa' is trying to
work out of a long bottoming pattern.
MOMO ($32.94) - 4,600 April $32 puts bought for $1.95 with shares falling 8% into the close. This will
become one of the largest positions in open interest.
SPCE ($19.15) - jumping again today with over 35,000 calls trading in the first 45 minutes, much higher
than normal. 4,000 Feb $18 calls are trading in addition to 5,000 Feb $19 calls and 9,000 Feb $20 calls.
SPCE has already doubled since mid-December.
SWKS ($124.84) - looks like calls are rolling out and up as 1,000 Feb $115 calls close for $12.86 and 1,000
March $125 calls are bought for $7.64. The stock and options activity both remain strong ahead of
earnings tomorrow (Thursday) afternoon.
AAL ($27.38) - 11,000 March $34 calls bought at the open for $0.13. Also looks like 3,000 May $28 calls
bought earlier for $2.08 while 3,000 May $30 calls were sold for $1.26. Will check open interest if it's a
call spread or if position is rolling back from the $30 to the $28 calls. Earnings tomorrow morning and
shares closed 4% higher last quarter, closed lower the previous 3 reports.
AMD ($51.37) - 900 March 2021 $55 calls bought early for $10.00 as shares continue breaking out to
new all-time highs.
AMRN ($20.77) - 1,600 April $20 puts sold to open for $3.10. There's been big call buying in Feb and
March expiration. Shares recently moved off support and MACD is strengthening, constructive look
ARNC ($28.74) - 4,500 Feb 28th $31 calls bought for $0.40. Shares opened significantly lower but have
been trying to work higher. Arconic has earnings on 1/27 and shares have a history of mixed reactions.
BA ($308.46) - 1,000 August $300 puts sold to open for $23.50. Trader showing longer-term support for
Boeing at the $300 level. Short-term, shares have moved below recent lows on the weekly chart. Not a
constructive look now.
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CHNG ($17.13) - a 1 x 2 put spread is opening as 2,000 March $17.50 puts are bought for $1.44 and
4,000 March $15 puts are sold to open for $0.39. Might be a protective position in Change Healthcare.
Earnings in mid-Feb and shares closed at least 5% higher the last 2 reports.
CL ($70.64) - looks like another call spread opening in Colgate-Palmolive with 1,000 May $75 calls
bought for $1.35 and 1,000 May $80 calls sold to open for $0.33. Options flow has been bullish the last 3
weeks in this name.
CS ($13.56) - 4,500 Feb $12 calls bought throughout the day for $1.74. Credit Suisse is expected to have
earnings in mid-Feb and shares have closed lower 5 out of the last 6 reports.
CTL ($15.02) - 10,000 Jan 31st $15 calls bought in a sweep for $0.32
CX ($4.26) - looks like a position is rolling up into strength as 12,500 Jan 2021 $4 calls are closing for
$0.79 while 25,000 Jan 2021 $5 calls are bought for $0.41 On the weekly chart, shares are working out
of a long downtrend with RSI showing strength.
ESPR ($54.34) - 1,300 March $45 puts bought for 2.80. Shares are weak today, down more than 2%
here. Stock has been rolling over and key support is around $52.
GE ($11.42) - a call spread opened earlier today as 41,000 June $13 calls are bought for $0.40 and
41,000 June $15 calls are sold to open for $0.11. General Electric has earnings on 1/29 and shares have
closed higher 3 out of the last 4 reports.
JBLU ($19.79) - 1,800 March $21 calls bought for $0.45 with shares breaking out above the $19.40 level.
MU ($58.96) - 4,500 Feb 7th $61 calls bought for $1.19 and 9,000 Feb 7th $62 calls bought for $0.89.
This follows other bullish activity in Micron, shares trying to move out of a small range today.
NEE ($259.86) - 1,400 Feb $260 calls bought for $4.20. Nextera Energy has earnings on Friday morning
and shares closed slightly higher the last 2 reports. With this being a utility, the stock doesn't move
much on earnings.
NKE ($104.52) - 30,000 Feb $110 calls bought throughout the day for $0.55 with shares trading around
$105. This will become the largest position in open interest. Nike doesn't have earnings until mid-March.
Shares have been incredibly strong since early November (weekly chart).
ON ($24.87) - looks like 2,500 April $28 calls bought for $0.85. This follows recent call buying, including
5,200 Feb $26 calls bought on 1/15 and 4,900 Feb $27 calls bought on 1/17. ON Semiconductor has
earnings on 2/3 and shares closed 10% higher last report. Weekly chart has been strong.
SDC ($13.04) - 4,000 Jan 24th $14 calls bought for $0.35 - $0.40 with shares moving to early highs, up
SE ($44.41) - looks like calls rolling up into strength as 1,800 Feb $44 calls close for $2.50 and 1,400 Feb
$48 calls are bought for $0.95
SNAP ($19.17) - a position is rolling out and up into strength as 14,000 Jan 31st $18.50 calls are closing
for $1.04 while 14,000 Feb 14th $20.50 calls are bought for $0.89 Ideally, it would be great to see some
consolidation for a better setup. Please note that Snap has earnings on 2/4.
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SPR ($65.90) - 2,500 July $55 puts bought earlier today for $2.60. On 1/10, there were 2,300 June $50
puts bought as well as 430 July $77.50 puts. Shares continue breaking down on the weekly chart, not
much support until the $60 level.
TME ($13.42) - 3,000 Feb $13 puts bought for $0.40
TSLA ($565.25) - options are very active again this morning as Tesla has reached a $100 billion market
cap for the first time ever. 150K contracts traded in the opening 30 minutes with calls outpacing puts.
Looks like 3,000 March $600 calls bought for about $36.
UNP ($180.97) - a lot of trades this afternoon ahead of earnings tomorrow morning. Looks like a bullish
spread opening based on IV change (selling this week's calls, buying next week's calls) - 3,500 Jan 24th
$190 calls sold to open and 2,500 Jan 31st $182.50 calls bought. This follows other bullish trades into
ZYME ($50.29) - opening put sales this morning with 750 June $35 puts sold to open for $3.60 and 500
June $30 puts sold to open for $2.05. Biotech company having a strong morning as traders show support
for the stock above the $30/$35 level.
This information does not constitute investment advice and please review the documents in the Legal
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