|Friday's highlights = MUST READ of Options players |
CHWY ($52.21) - 1,400 October $70 calls bought in a sweep about $1.07 and 1,200 Jan 2021 $60 calls
bought throughout the day for about $4.80. Shares are near highs of the day, moving to the upper end
of a range. A breakout above the $52.50 resistance level would lead to a measured move to about $60…
CODX ($24.19) - a call spread is opening today as 3,000 Aug $25 calls are bought for $3.55 and 3,000 Aug
$35 calls are sold to open for $1.30. Need to confirm the change in open interest since trades are hitting
in many small lots. Shares are trending higher in recent months due to company's COVID test, earnings
expected in early August but not seeing an exact date.
CRUS ($68.22) - 400 August $67 calls bought in a sweep for $3.90. Cirrus Logic (an Apple supplier) has
earnings on MONDAY after the close. Shares have closed higher each of the last 5 reports.
GDXJ ($60.32) - 2,500 August $60.50 calls bought in a sweep for $3.40. Over 21,000 August $60 calls
remain in open interest, which is the largest position. On 7/24, the August $60/$65 call spread opened
9,300x for $1.51.
SPY ($324.91) - a call calendar opened this morning...
11,000 Nov $339 calls sold to open for $8.71
11,000 Dec $339 calls bought for $10.49
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On 7/21, the Nov/Dec $347 call calendar opened 9,775x. On 7/24, the Nov/Dec $338 call calendar
opened 10,940x. Call calendars seem to be focused on the US presidential election. Traders seeing
limited upside leading up the election and potential for strong move into the end of 2020.
TER ($87.75) - looks like 3,500 Jan 2021 $90 calls bought for about $9.70. Shares of Teradyne are
consolidating below the $91 level, trader is buying plenty of time for the stock to continue the trend
UPWK ($14.97) - looks like 3,000 August $17.50 calls bought today for $0.75. Calls are trading against
existing position - will need to confirm change in open interest. Upwork has earnings on 8/4 and shares
have closed higher 3 of the last 4 reports. Opening put sales yesterday (bullish)...
BTAI ($45.06) - 1,200 September $60 calls bought in a sweep for $6.10. Large activity in BioXcel
Therapeutics. Quick look at catalysts shows some data due "mid-2020". On 7/20, BMO Capital raised PT
to $104 with recent positive data from SERENITY program and imminent TRANQUILITY readout in
dementia to drive further upside. On 7/21, Canaccord raised PT to $120.
CCL ($13.85) - early buyers of 3,500 September 4th $15 puts for about $1.95. Shares of Carnival moving
to early lows here.
EXPE ($80.74) - the second largest position is rolling back as 17,500 Jan 2022 $110 calls are closing for
$9.65 while 17,500 Jan 2022 $90 calls are bought for $16.35. That massive position is rolling back into
weakness, shares of Expedia down 7% following earnings.
FLDM ($7.11) - shares are jumping 40% off headlines that the company was selected by National
Institute of Biomedical Imaging and Bioengineering for a $37 million project involving COVID-19 testing.
Around 4,500 August $7.50 calls have traded; most bought for about $1.40.
HSBC ($22.64) - 7,000 August 7th $23 calls are trading; most bought for about $0.32. Speculative activity
ahead of earnings on MONDAY morning. Volume coming in for those calls after a mention on CNBC's
IP ($34.58) - looks like 2,000 Jan 2022 $30 puts sold to open for about $4.00. International Paper
reported earnings yesterday morning, shares moving lower to end the week. On the monthly chart,
shares do have some notable support around the $30/$31 level.
JD ($63.78) - 3,600 August 7th $65 calls bought in the opening hour for about $0.85. Calls have been
bought in many small lots, not aggressive sweepers hitting one after another. Shares have been
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consolidating in recent weeks, traders are playing for a move higher ahead of earnings. Earnings are
expected in second week of earnings, calls will not capture that report.
LITE ($92.56) - 550 August 14th $95 calls bought in a sweep for $3.20. Yesterday, traders bought 1,250
Nov $97.50 calls while closing 950 Sept $90 calls. Earnings on 8/11 and shares closed at least 4% higher
each of the last four reports. On the weekly chart, shares have recently enjoyed a nice move out of a
OSTK ($75.94) - 1,050 September $85 calls bought in a sweep for $12.00. Traders are chasing strength,
the stock jumped on earnings yesterday.
PDD ($91.91) - 1,300 August 7th $95 calls bought throughout the day for $1.60. Traders are chasing
strength in the Chinese tech stock, shares jumping 8% today.
SPCE ($22.43) - 1,100 September $22 calls bought in a sweep for $3.55. Weak day for Virgin Galactic but
shares trying to lift higher with call buying.
WBA ($40.71) - looks like 1,300 October $37.50 calls bought throughout the morning for $4.10. Will
need to confirm the change in open interest - many of those calls trading in small lots. Those calls should
capture earnings in early October. On the weekly chart, shares remain in a downtrend.
WMT ($129.06) - 5,500 August $130 puts bought early this afternoon for about $4.60. Shares of
Walmart have shown weakness - pulling back after hitting resistance around $132/$133, bearish MACD
crossover, and dropping below the 20-EMA today.
WORK ($29.34) - shares of Slack are moving off the lows with 4,500 weekly $29 calls bought for about
$0.09. Small premium in calls that expire today, these are lotto calls.