Bet on further move higher in shares through February.Nearly 20,000 contracts traded on the February 21st, 2020 $30 call options inCorning Incorporated (GLW). Against a prior open interest of about 1,550 contracts, it’s a 13-fold jump in volume. With shares trading around $28.80, the option is about 4.1 percent out-of-the-money. Given how shares are trading near the bottom end of their range, a move higher in-the-money in the coming weeks is possible. At a cost under $1.00, each contract cost the buyer less than $100. Corning, perhaps best known for making the screens for smartphones ...

Bet on continued rally though May, 2020.Nearly 4,000 contracts traded on the May 2020 $15 call options onSeaspan Corporation (SSW). Compared to the prior open interest of 553 contracts, it’s a seven-fold surge in volume. Shares trade in the low $13 range, meaning they need to move $2 higher, or about 15 percent, before expiration in May to close in-the-money. The option price of around $0.50, or $50 per contract, means the buyer starts to make money if shares hit $15.50. Seaspan is an independent charter owner and manager of container ships based out of Hong Kong, operating a fleet of...

Long-dated, in-the-money put trade suggests downside ahead.Over 1,100 contracts traded on theNordstrom (JWN) April 2020 $40 put option, showing about a 7-fold increase over the prior open interest of 176 contracts. Given the $40 strike and shares trading around $38, the option is already about $2.00 in-the-money, and should move higher dollar-for-dollar with shares if they decline, less any loss in time premium. As the option trades around $5 per contract, it will make money for the buyer at expiration if shares drop under $35.00. This bet against the retailer comes during the holiday...

Bet on further rally this month.The December 20th $20 call options onJetBlue (JBLU) saw over 31,665 contracts trade hands, a 19-fold rise over the prior open interest near 1,700 contracts. The bet, expiring in 15 days, will be in-the-money if shares can rise another $1.00 from their current price near $19.00. The buyer paid $0.25, or $25 per contract, so any move higher in JetBlue shares could lead to a big percentage return in the next few days, even if shares don’t clear $20.Action to take: We like this short-term trade. Oil prices may have moved slightly higher, but they seem range-bo...

Bet on shares rallying through January. The January 17th, 2020 $45 call options onVicor Corporation (VICR) saw over 1,100 contracts trade hands against a prior open interest of just over 100, for a 10-fold rise in volume. In order for the option to move in-the-money in the next 44 days before expiration, shares of the company will need to rally about $4 per share from their current price near $41, about a 10 percent increase. Vicor, a manufacturer of modular power systems, has lagged the overall market in the past year,  as have many companies in the industrial space, but also trades at ...

Bet on shares moving 20 percent higher by late January.The January 17th 2020 $280 call options onAmgen (AMGN) saw a 21-fold increase in volume with over 3,100 contracts trading hands. Shares of the company would need to rally about 19 percent from their current price near $234 for this out-of-the-money call to expire with any value. The option buyer paid around $0.10, or just $10 per contract, so it’s a cheap bet on shares moving higher in the next few weeks. Even if shares don’t hit the $280 strike price, a sharp rally could lead to a quick double or triple from current prices. The d...

Call buying indicates further rally this month.With 18 days until expiration, the December 20th $36 call options onPeloton Interactive (PTON) saw a 20-fold rise in volume, from 127 open contracts to over 2,600. As shares surged last week to $35, the option is merely $1 out-of-the-money, and a further rally could move it in-the-money. However, at a price over $2.15 per option, the option buyer needs to see shares rise to over $38 to make money at expiration. Peloton, a maker of interactive fitness products that include high-tech features such as touchscreens and live screens of classes...

Bet on rally through December.Call options expiring on December 20th with a $21 strike price oniQIYI (IQ) saw a 73-fold rise in volume, going from 115 open contracts to nearly 8,500 contracts trading hands. With the trade expiring in 21 days, and as shares of IQ trader just under $20, it’s a bet that shares will rally about 6 percent in the next few weeks. Given that shares have traded as high as $29 in the last year, a move higher is likely. Shares of the Chinese online entertainment company have slid 3 percent in the past year, but shares are off their 52-week lows and are starting ...

Call buying suggests big surge ahead.The January 2020 $19 call options onThe Mosaic Company (MOS) saw a 43-fold rise in  volume in trading, with over 11,600 contracts trading hands against a prior open interest of 269. With 51 days to go, and with shares trading just below $19, the option trades almost at-the-money, and could move higher penny-for-penny if shares do as well. With the trade at $0.93, the shares will need to rise close to $20 for a profit by expiration. Shares of the potash producer have slid from a 52-week high of $37 to the low $17 range, and have started to tick high...

Long-term bet on further drop in shares.The January 2021 $4 put options onBanco Santander (SAN) saw over 1,000 contracts trade, a nine-fold increase on the prior number of open contracts on the option. The put is about $0.03 in-the-money, as shares trade just south of the strike price of $4. The put seller is betting that shares will decline in the next 416 days before expiration, and shares will need to drop to at least $3.40 to provide a profit after the $0.60 purchase price. Shares of the bank have fallen 17 percent in the past year, so the put sale is a bet on the trend continuing...