Unusual Options Activity: Target (TGT)

Traders bet on drop in shares in the next 9 days. The January 10th $126 put options on Target (TGT) saw a five-fold surge in volume, going from 434 open contracts to over 2,050 trade hands. Expiring in just 9 days, the bet will pay off if shares of the retailer, which gained over 90 percent in 2019, will drop just $2 from its price of $128 per share. The option buyer paid about $0.85, so a move to $125 per share would ...
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Unusual Options Activity: Uber (UBER)

Traders bet on further rally. The February 2020 $30 call options on Uber (UBER) saw a 19-fold rise in volume, going from 265 open options to over 5,100 contracts trade hands. Expiring in 52 days, shares trade just under $30, making these options at-the-money. A rally in shares should send the options up dollar-for-dollar, less any loss of time premium. With the buyer paying around $2.15, shares would need to clear $32 in late February for the option buyer to profit at expiration. Considered ...
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Unusual Options Activity: JD.com (JD)

Traders bet on further rally in shares. The June 2020 $44 calls on JD.com (JD) saw a 20-fold rise in volume, going from 100 open trades to over 2,000 contracts change hands. Shares currently trade just over $36, so a move to $44 in the next 172 days before expiration implies a 22 percent upside for shares. The option buyer paid about $1.08, or $108 per contract. That’s a low price that could lead to triple-digit returns if shares rally sufficiently. JD.com is an ...
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The Disney+ Launch Has Made Investors Too Optimistic

Shares of The Walt Disney Company may have gotten ahead of themselves as investors have gotten overly optimistic following a great year for the company. Trading Tips’ Andrew Packer explains in our latest video ...
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Unusual Options Activity: Snap (SNAP)

February call buying suggests further rally. The February 2020 $16 call option on Snap (SNAP) saw a 62-fold rise in volume, going from 182 open contracts to over 11,300 trade hands. With 56 days until expiration, and with shares of Snapchat around $15.85, a 1 percent move higher in the social media firm will move the options in-the-money. At a price of $1.35 per contract, however, the option buyer will see the option trade at a profit come expiration if shares move over ...
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Two Royalty Stocks for 2020 (and Beyond)

This high-margin business model spells consistent profits. While there are plenty of business models out there for how to operate a company, a great one for shareholders is in the royalty space. Simply put, a royalty company owns a patent or provides capital to another company. When that other company makes a product, a tiny amount of sales go to the royalty company. This provides a number of advantages for the royalty company. They have no production risk, no sales, and can operate ...
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Unusual Options Activity: Visa (V)

Traders bet on continued rally. The February $200 call option on Visa (V) saw a 10-fold surge in volume, going from 140 open contracts to seeing over 1,400 trade hands. The bet, expiring in 57 days, is that shares can move up to $200 from their current price near $188. The $12 move in shares is about a 6.4 percent rally. The option buyer paid $1.02, or $102 per contract, making for an inexpensive way to bet on the current rally in shares ...
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Unusual Options Activity: Micron (MU)

Traders bet on continued rally. The January 10th, 2020 $57 call options on Micron (MU) saw a 37-fold rise in volume, going from 139 open contracts to over 5,000. With only 16 days until the option expires, shares will need to rise 2.8 percent in order to move in-the-money. And costing around $0.90, or $90 per contract, shares may need to move closer to $58 before the call buyer profits. Shares of Micron are already trading near a 52-week high and have surged ...
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