Shares of file-sharing companyDropBox (DBX) have been rising steeply in recent sessions. While shares are nearing overbought levels on a technical basis, at least one trader sees the potential for a move higher. That’s based on the October $35 calls. Over 11,660 contracts traded a 24-fold rise in volume from the prior open interest of 493. The buyer of the calls paid about $1.11 to make the trade. With shares rallying to just under $30, it will take another 16 percent rally in shares for the option to move in the money over the next 122 days. Since going public in early 2019, shar...

Since surging to all-time highs over the past year, electric vehicle manufacturerTesla Motors (TSLA) has seen prices slide, twice hitting a low of around $550 before bouncing higher. One trader sees the potential for another test of that low. That’s based on the July 23 $600 puts. With 39 days until expiration, over 4,230 contracts traded, a 42-fold rise in volume from the prior open interest of 101 contracts. The buyer of the puts paid about $41.30 for the contracts. With shares around $600, it would take a move down to a price of $550 or lower for the option to profit today’s buyer...

Shares of for-profit prison firmThe Geo Group (GEO) saw a massive jump in shares, with the stock price moving as much as 50 percent higher at times on Wednesday. At least one trader sees further jumps in shares likely in the next week. That’s based on the June 18th $20 calls. Over 12,200 contracts traded against a prior open interest of 110, for a similar 110-fold rise in volume. The buyer of the options paid about $0.23. With shares under $9, in order for the option to close in-the-money, shares would need to more double. With the trade closing in a week, that looks unlikely, even w...

Social media giantTwitter (TWTR) saw its shares drop heavily in late April, closing out a bearish chart signal. Now, shares are trending up again, and one trader sees the potential for a new all-time high this summer. That’s based on the August $80 calls. With 71 days until expiration, over 11,444 contracts traded, a 113-fold jump in volume from the prior open interest of 111. With shares just under $60, it would take a 33 percent rally for the option to move in-the-money. The buyer of the call options paid about $0.68 to make the trade. Shares of Twitter initially slid this year ...

Shares of investment bankGoldman Sachs (GS) have fared well in the past year thanks to a strong stock market, a rise in investment and IPO activity, and low interest rates. One trader sees the potential for a pullback, however. That’s based on the July $375 puts. Expiring in just over one month, over 5,840 contracts traded against an open interest of 134, for a 44-fold rise in volume. The buyer of the puts paid about $7.63 to make the trade. With shares of Goldman around $388, they would need to decline about $13, or about 3.3 percent, for the option to move in-the-money. Followin...

Shares of payments processing companySquare (SQ) saw a jump higher on Friday as the company announced more initiatives to integrate traditional finance with the rise of cryptocurrencies. While the move was small, one trader sees a bigger rally ahead. That’s based on the August $280 call. With just over two months until expiration, over 7,700 contracts traded against a prior open interest of 178, for a 43-fold rise in volume. The buyer of the call paid about $3.83 for the contracts. With a share price closer to $215, the option will expire in-the-money if shares rise just over 25 perc...

Shares of experimental battery makerQuantumScape (QS) have surged higher in recent sessions. While the move may just be part of a trend of retail investor favorites moving higher, one trader sees the opportunity for shares to jump much higher in the coming weeks. That’s based on the June 25th $40 calls. With 18 days on the clock, over 7,040 contracts traded against an open interest of 329 contracts, for a 21-fold rise in volume. The buyer of the calls paid about $0.64 to make the trade. With shares around $30 at the time they were bought, they would need to rally another 33 percent o...

Shares of oil and gas equipment and services companyBaker Hughes (BKR) have surged 30 percent higher in the past month. One trader sees that trend continuing over the summer. That’s based on the October $29 calls. With 133 days until expiration, over 6,180 contracts traded against a prior open interest of 104, for a 59-fold jump in volume. The buyer of the calls paid about $1.45 to make the trade. Shares have recently broken through to new highs, exceeding the prior high set a few months back. Shares are also trending up without getting into overbought technical territory, suggesting...

Shares of utility companyNRG Energy (NRG) have been in a sharp drop since early March. One trader sees the potential for a partial rebound in the coming weeks. That’s based on the July $35 calls. Over 6,900 of the contracts traded against a prior open interest of 218, for a 32-fold rise in volume on the trade. The buyer of the calls paid $0.85. Shares of the company have recently pulled back to six-month lows, and the price is down nearly 11 percent over the past year as a result. Besides being at six month lows, shares have recently started throwing off oversold technical indicators...

Shares of megabankCitigroup (C) have nearly rallied back to their pre-pandemic peak in recent months. However, one trader sees the potential for a big decline in shares at some point in the next year and a half. That’s based on the January 2023 $80 puts. With nearly 600 days until expiration, over 5,300 contracts traded against an open interest of 118, for a 45-fold surge in volume. The buyer of the puts paid about $12.90. The $80 strike price is slightly in-the-money given a recent price in shares near $79. Bank stocks can be particularly vulnerable to economic uncertainty, so if at...