After a massive move higher, at least one trader is betting that video game retailerGameStop (GME) is likely to drop. That’s based on the February 2021 $21 puts. Over 8,000 contracts traded against a prior open interest of 337, making for a 23-fold rise in volume. The option expires in 52 days. The buyer paid about $4.60 for the contracts. Shares of the stock last traded at $21, making this an at-the-money trade. Shares of the company have risen 228 percent in the past year. The move has occurred as new video game consoles and sales appear to benefit the company after repeated quarte...

Shares of internet auction houseeBay (EBAY) have more than doubled off their low set in March. While the move hasn’t been as big as a tech company, at least one trader sees a further move higher. That’s based on the March 2021 $50 calls. The calls trade about $1.50 in-the-money. Expiring in 81 days, over 11,100 contracts traded against a prior open interest of 184, for a 60-fold move higher in volume. The trader paid about $4.40 for the option, so shares would need to trade near $54.50 to profit at expiration.Action to take: eBay has performed well this year, but has flatlined in rec...

Shares of commercial optical and photonic product firmLumentum Holdings (LITE) have been trending higher since September, with a large spike in shares right before the holidays. At least one trader is betting the move will continue. That’s based on the January $105 calls. Expiring in 21 days, over 7,600 contracts traded against a prior open interest of 209, for a 37-fold rise in volume. The trader paid about $1.80 to make the trade. Making products such as lasers and fiber optics to transfer data efficiently, the company is likely a beneficiary of increased investment in communicatio...

Shares of telecom and media playAT&T (T) have been volatile in recent sessions. Shares rallied over 10 percent in November, then gave up most of those gains in December. But one trader sees the pullback as the start of a new possible rally. That’s based on the action in the January 2021 $28.50 calls. The just in-the-money options expire in 22 days. Over 675 of the contracts traded against a prior open interest of 104, for a 6-fold gain in volume. The buyer paid $0.72 for the contracts on average. The telecom company has reported declines in its core business over the years, bu...

Shares of natural gas fuel playClean Energy Fuels Corp (CLNE) have been on a tear, more than doubling since early November. At least one trader sees the rally continuing, albeit at a slower rate. That’s based on the January 2022 $10 calls. With shares just under $6, CLNE would need to rally another 70 percent for the trade to move in-the-money. That’s certainly possible in the next 394 days before expiration. Over 4,300 of the contracts traded, a 19-fold rise in volume from the prior open interest of 226. The option buyer paid about $1.63 on average for the options. Over the past ...

Shares of social media companySnap Inc. (SNAP) have had a strong rally year-to-date. At least one trader sees a pullback in shares by year-end. That’s based on the December 31st $48 puts. With shares trading near $53, they’d need to decline nearly 10 percent for this option to move in-the-money. The buyer paid about $0.45 for the puts. Over 19,970 contracts traded, a 130-fold rise from the prior open interest of 154. This massive rise in volume suggests that shares, which have doubled since early October, may give back some of their recent gains. The company has yet to reach profitab...

Shares of cybersecurity firmFireEye (FEYE) dropped on news of a massive hack before turning around on Friday. At least one trader sees shares moving even higher. That’s based on the January 2021 $19 calls. With 25 days until expiration, over 21,100 contracts traded, a 121-fold rise in volume from the prior open interest of 174. The trader paid about $0.33 for the contracts. With shares jumping to $19 on Friday, the option has become the at-the-money trade. A 30 percent jump in shares on Friday sent the price of the stock to a level last seen in August before shares sold off, and a...

Shares of megabankCitigroup (C) have done well in the past few weeks during the last stock market surge. At least one trader sees that uptrend continuing in the next few weeks. That’s based on the January 2021 $63 call options. With 35 days until expiration, and with shares at $60, a 5 percent rally in shares would send the trade in-the-money. The trader paid about $1.54 for the options. The options saw over 2,100 contracts trade against a prior open interest of 110, for a 19-fold rise in volume on the trade.Action to take: Shares are near overbought territory, but have been so since...

Shares ofRigel Pharmaceuticals (RIGL) have been trending higher in recent weeks. Despite a spike higher in shares yesterday, at least one trader sees even further upside ahead. That’s based on the activity in the January 15th 2021 $3.00 calls. Expiring in 29 days, over 22,770 contacts traded, a 45-fold rise in volume from the prior open interest of 508. The trader paid about $1.00 for the options, which are about $0.50 in-the-money. The company develops small-molecule drugs for autoimmune, viral and cancer-related diseases. Shares of the early stage company are up nearly 60 percent o...

Shares ofAES Corp (AES) have rallied by over 25 percent in the past few months. At least one trader sees the utility company pulling back from these levels. That’s based on the January 15th 2021 $20 puts. Expiring in just 30 days, over 4,050 contracts traded against a prior open interest of 186, for a 22-fold rise in volume. With shares at $21.65, shares would need to fall nearly 8 percent for this trade to move in-the-money. The option buyer paid about $0.28 for the contracts. Shares of the utility are up about 12.6 percent in the past year, just slightly underperforming the S&P...