Bet on shares heading higher into the spring.Over 7,180 contracts traded on theFreeport McMoRan (FCX) May 2020 $13 call option, a six-fold surge in volume. The trade, with shares currently around $11, is a bet on another $2 rally in the coming months—or another 18 percent gain from current levels. Such a move is possible, as the 52-week high for shares is closer to $15 rather than $13. With shares starting to head higher in recent weeks, the trade looks like a profitable one. With the option buyer paying around $0.63, or $63 per contract, they’ll need to see shares closer to $14 befor...

Long-dated call buying rises after earnings beat.Shares ofTarget (TGT) rose to a new 52-week high after a great earnings report, and many traders made bets on how long the rally would last. With many trades expiring in the next few weeks, a surge of volume on the April 2020 $150 calls looks interesting. It’s a bet on shares rallying another $25, or 20 percent, in the next 148 days, and the 550 options trading over the prior open interest of 114 shows a five-fold increase. While that’s not the largest volume change on a Target options trade, for the time involved and as a bet on a furt...

Surge in call options expiring Friday.Over 122,140 contracts expiring on Friday at a $42 strike price forAdvanced Micro Devices (AMD) changed hands—a 25-fold surge in volume over the prior open interest of 4,800. Shares of the company currently trade at $41, meaning a 2.4 percent increase in shares in the next two trading days is necessary for the options to move in-the-money. If that doesn’t happen, the option will expire worthless. The company has rallied strongly recently, with shares hitting new 52-week highs.Action to take: We like buying call options on AMD as a momentum trade. The...

Bet on push back to 52-week lows. The March 2020 $30 put options onUnum Group (UNM) saw over 2,400 contracts trade against a prior open interest of 145—making for a 17-fold surge in volume. The short trade is already about $1.00 in-the-money as shares currently trade around $29.00. The option would need to see shares slide another $1.50 or so before today’s put buyer started to really start making a profit at expiration in the next 122 days. Unum group provides financial protection benefit solutions such as long-term and short-term disability, group life, accidental death, and othe...

Long-dated put options see heavy volume.Although consumer tech giantApple (AAPL) is having a pretty good year, at least one trader is betting on a pullback. That’s based on the 40-fold surge in volume on the February 2020 $240 put options. With shares of the company around $264, that’s a bet on shares dropping nearly 10 percent. Over 11,000 of those contracts traded against a prior open interest of just 300— indicating a massive bet on a modest drop in shares. Shares of the company have soared 37 percent in the past year, more than double the return of the S&P 500 Index in the sam...