At least one trader sees a massive surge higher in shares of megabankWells Fargo (WFC) this month. That’s based on the rise in volume on the November $24.50 calls, expiring in 17 days. The options saw over 68,000 contracts trade against an open interest of 3,300 contracts, a 20-fold rise in volume. Shares currently trade under $22, so the call buyer is betting on a double-digit rally in shares. Shares of Wells Fargo took a dive last week following earnings. While earnings weren’t terrible, it’s clear the bank is still being impacted by years of poor management and scandals, as reflec...

Chinese electric-vehicle companyNIO Limited (NIO) has been a runaway winner and popular stock to trade. One trader sees shares heading even higher before the end of the year. That’s based on the surge in buying on the December $39 calls. Over 1,580 contracts traded on Friday, a ten-fold rise in volume from the prior open interest of 158. The trade expires in 48 days, and requires a near-30 percent jump in shares from here to move in-the-money. The trader paid about $2.00 for the options on average. Shares of NIO are already near an all-time high before pulling back on Friday. A surge...

Defense contractorRaytheon (RTX) has seen shares slide in recent sessions following a probe over its contracts with the U.S. government. But at least one trader sees the issue being a short-term one. That’s evidenced by the trade in January 2022 $55 call options. Over 4,600 contracts traded yesterday against an open interest of 553, for an eight-fold increase in volume. The trader paid $6.60 on average for a contract just $2.50 out-of-the-money. Shares of RTX have dropped over 15 percent since the probe was announced, and if cleared, shares will likely bounce back quickly. That shoul...

Credit card companies have seen their shares bounce, but if consumers stop paying the bills, it’s a space that could be in for some trouble. Yet one trader still sees upside ahead for the sector with a bet onVisa (V). The bet? The September 2021 $200 calls. Over 16,900 contracts traded against a prior open interest of 453, for a 37-fold increase in volume. The trade, expiring in 323 days, will move in-the-money if shares rise about 10 percent from their current price near $181. The trader paid about $13.35 for the call option. Shares of Visa hit the skids on Wednesday on the back ...

At least one trader is betting that oil giantBP (BP) will head higher despite reporting its fifth-quarterly loss in a row on Tuesday. The trader bought the December 18th $15 call options, expiring in 51-days. The options are about $0.50 in-the-money and should move penny-for-penny higher with shares. The options saw over 10,700 contracts trade against a prior open interest of 432, a 25-fold rise in volume on the trade. The option buyer paid about $1.20 for the contract. With the option already in-the-money, just over half the option’s value is in time premium, which will go to zero. ...

Shares ofCisco (CSCO) have been trending down the past few weeks. One trader betting that shares still have another 14 percent to decline. That’s the logic behind the move in the November 20th $32.50 puts. Over 8,800 of the contracts traded against an open interest of 22, for a 40-fold rise in volume. The option expires in 24 days, and from the current share price near $37.50, would require a 15 percent drop in shares to move in-the-money Cisco next reports earnings on November 12th, the week before the options expire. So chances are the trader expects the company to miss on earnings...

One trader sees a rally in the next month inKennedy-Wilson (KW), a real estate company with a focus on multi-family properties. The November 20th $15 calls, expiring in 25 days, saw over 3,300 contracts trade against a prior open interest of 127. That’s a 26-fold rise in volume, a very unusual move for such a small company. The buyer paid $0.30 for the option, on average. Shares would need to rise about $1.00, or 6.3 percent from their price near $14 for the trade to expire in-the-money. Shares of the company are down 37 percent over the past year. Traders have flocked to housing ...

At least one trader sees some big downside ahead forOccidental Petroleum (OXY). That’s based on the 23,860 contracts traded on the February 2021 $8 put. With shares around $9.80, that implies a 19 percent decline in the next 119 days. The prior open interest on the option was 1,107 contracts, making for a 21-fold rise in volume. The trader also paid about $0.74 for the option. Shares would therefore need to hit $7.30 at expiration to profit. Shares of Occidental have been hit hard in the past year as energy prices have collapsed amidst robust production but declining demand. Shares a...

Although shares ofSibanye Stillwater (SBSW) are at a 52-week high, one trader sees shares moving even higher. The April 2021 $15 calls on the company saw a 20-fold rise in volume. Over 2,580 contracts traded hands against a prior open interest of 127. The bet, expiring in 176 days, is that the precious metals mining company will rise another $1.50 from its current price near $13.50. The calls will move in-the-money on a further 11 percent move in shares. The buyer of the calls paid about $1.90 on average, so shares would need to be closer to $17 for the trade to close at a profit. ...

Shares of Swiss bankUBS Group AG (UBS) had a decent day on Tuesday, as the bank reported its strongest third-quarter earnings in a decade. Traders see more upside ahead. That’s shown by the 16-fold rise in volume on the August 2021 $12.50 calls. The options saw over 1,650 contracts trade against a prior interest of 101. The option is at-the-money, meaning the trade should rise dollar for dollar with any move higher in the bank’s stock. The option expires in 303 days, so there’s plenty of time for the trade to play out. And the option buyer paid about $1.20, or just under one tenth th...