Shares ofVirgin Galactic (SPCE) dropped heavily on Monday, as the company’s latest test flight triggered a failsafe. But at least one trader recognizes that rocket science is complex, and shares will recover. That’s based on the January 8th 2021 $27.50 calls. Expiring 24 days, over 1,400 of the contracts traded hands, a 13-fold increase in volume over the prior open interest of 110. The trader paid about $2.65 for the options. Shares fell to just under $27, making this an at-the-money trade. For the trader to profit at expiration, shares will need to trade just over $30 in the next m...

Shares ofArrowhead Pharmaceuticals (ARWR) have more than doubled since mid-September. With a strong uptrend in place, at least one trader is betting on a further move higher. That’s based on the March 2021 $90 calls. Over 2,100 contracts traded against a prior open interest of 121, for a 17-fold rise in volume. With shares just under $75, they would need to rise another 20 percent by expiration for the option to move in-the-money. The trader paid about $5.40 for the contracts on average, meaning shares would need to top $95 for a profit if held to expiration. Even with the recent ...

Shares of electric vehicle playNIO Limited (NIO) have had massive returns this year. However, shares have started to slide in recent sessions. One trader sees the possibility of a further decline. That’s based on the May 2021 $36 puts. Over 2,125 of the contracts traded hands, a 13-fold rise in volume from the prior open interest of 179. With shares trading near $44.50, the option would move in-the-money if shares dropped about 20 percent from their current price. The trader paid about $7.40 for the option trade, so shares would need to drop even further for a profit at expiration. ...

Shares of consumer tech giantApple (AAPL) have been rising in recent sessions, but are still well under the all-time high set in early September. One trader sees the current rally ending. That’s based on the January 8th 2021 $125 put options, expiring 29 days from now. Over 8,185 of the contracts traded hands, a 21-fold rise in volume over the prior open interest of 388. The option is at-the-money, with shares trading just a hair under $125. The option buyer paid about $4.45 for the contracts. Shares would need to trade near $120.50 at expiration for the put buyer to profit. Over the...

Shares of rideshare giantUber Technologies (UBER) have shaken off a pandemic-driven drop to rally to all-time highs in recent weeks. One trader sees shares moving even higher. That’s based on the activity in the January 2023 $75 calls. Over 2,550 contracts traded against a prior open interest of 148, for a 17-fold rise in volume. Expiring in 772 days, shares would need to rise about 40 percent to move in-the-money. The trader paid about $8.70 for the contracts. To make a profit at expiration, shares would need to trade closer to $83.70.Action to take: There’s a lot to like about this...

Shares of uranium mining giantCameco (CCJ) have risen in recent sessions. At least one trader expects that uptrend to continue. That’s based on the July 2021 $20 call options. Those options saw over 3,230 contracts trade recently, a 20-fold rise in volume from the prior open interest of 161. Expiring in 220 days, the options would move in-the-money if shares rose about 70 percent higher from their current price near $11.70. The trader paid $0.34 to make the trade. Shares have traded as low as $5 in the past year, set during the market crash. The recent spike in shares has sent the co...

Shares of semiconductor giantMicron Technology (MU) have been soaring higher in recent weeks. Traders expect the trend to continue. The April 2021 $77.50 call option just saw over 8,450 contracts trade, against a prior open interest of 196. That’s a 43-fold rise in volume. The trader is betting that shares will rally another $4 from their current price near $73.50 in the next 130 days. The trader paid about $6.75 for the options. Over the past few years, shares of Micron have struggled to stay over the $60 range, facing sharp pullbacks each time. This time however, shares have gapped...

Shares of athletic apparel firmUnder Armour (UAA) have been part of the market’s uptrend in the past few weeks. One trader sees shares continuing even higher. That’s based on the January 8th 2021 $17 call option. Over 14,110 contracts have traded, a 140-fold rise in volume from the prior open interest of 101. Expiring in just 35 days, the buyer paid $0.95 for the contracts, which will move in-the-money if shares move just 30 cents higher. Adding in what the buyer paid, they’ll make a profit if shares move at least 7.7 percent higher in the next month. The company has yet to return...

Ride sharing giantUber (UBER) had a great month in November. Legislation in California to classify contractors as employees failed, and shares rallied. One trader sees shares moving even higher. That’s based on the December 24th $60 calls. Over 2,770 contracts traded against a prior open interest of 153, for an 18-fold rise in volume. The trader paid about $0.32 for the option, which expires in 21 days. With shares near an all-time high at $51, it will take another 17.6 percent rally in shares for the options to move in-the-money by expiration.Action to take: This low-priced option c...

International mining giantVale (VALE) has fared well this year as a recovering global economy has increased demand for raw commodities. One trader sees this playing out even further. The March 2021 $18 calls just saw 17,700 contracts trade against a prior open interest of 788, for a 22-fold rise in volume. The trade, expiring in 107 days, is that shares will move nearly $3 per share higher, or about 17 percent. The trader paid $0.51. Based in Brazil, Vale is best known for iron ore and iron ore pellets. But the company also extracts minerals such as nickel, copper, gold, and silver a...