At least one trader is betting on a bounce higher in airline manufacturerBoeing (BA) this month. The October 23rd $187.50 calls just saw 1,188 contracts trade. That’s a nine-fold rise in volume over the prior open interest. Shares trade around $171, so would need to rally about 10 percent in the next 17 days for the trade to move in-the-money. That’s no small feat, but shares of the company have been volatile enough that it could happen. The option trader paid $3.70, or $370 per contract, so if shares do move higher quickly, the option should deliver mid-to-high double-digit returns....

The energy space continues to remain out of favor as demand remains low. Traders remain bearish, as indicated by the surge in buying in the January 2021 $17.50 puts onRoyal Dutch Shell (RDS.A). Over 1,780 contracts traded on Friday, a 15-fold rise in volume. The oil giant’s shares are near $24, so the put buyer needs shares to drop over 25 percent in the next 102 days before the option expires for the trade to move in-the-money. The Anglo-Dutch oil giant has seen shares drop from a high of $60 at the start of the year. With the massive disruption in the economy this year, the company...

Traders are betting on a rally in tech giantMicrosoft (MSFT). The November 6th $230 calls, expiring in just over a month, saw a huge uptick in volume. Over 7,000 contracts traded, a 30-fold rise in volume from the prior open interest. With shares around $212, the $230 calls represent just under a 10 percent rally in shares from here in the next month, at least if the option trade is to move in-the-money. The buyer paid $3.33 per contract. With a 52-week high of $232, it’s possible that shares rally back to that point in the next month or so provided there’s a strong stock market. The...

Traders are betting on a big move higher inThe Gap (GPS). Over 7,700 contracts traded on the December 2020 $19 calls on shares. That’s a 55-fold rise in volume compared to the prior open interest of 141 contracts. Shares of The Gap trade at $17, so shares need to rise a bit over 10 percent in the next 80 days to move in-the-money. The option traded for $0.67, or $67 per contract, on average. Shares of the retail apparel firm have nearly tripled off their low, and are now down just 6 percent over the past year. That still lags the overall stock market, but clearly traders are betting ...

Traders are betting on a big move higher inGoPro (GPRO). The July 2021 $5 calls just saw over 2,500 contracts trade, a 24-fold surge in volume over the prior open interest of near 100 contracts. Expiring in 291 days, the bet is that shares will rally over 10 percent from their current price near $4.25. The call buyer paid about $0.84, or $84 per contract, on average. Shares of the "selfie stick" company will need to move over 25 percent higher in the next nine months to move in-the-money. While that may sound like a stretch, shares put in a 52-week high back in August around $5.60, s...

The energy sector continues to slide lower, and traders are betting that the trend will continue. A number of bearish trades have been made againstOccidental Petroleum (OXY). The most active was the October 30th $10 put. Expiring in just 35 days, shares would need to fall about 3 percent from their current price of $10.30 to move in-the-money. Over 2,153 options traded against an open interest of 111, for a 19-fold rise in volume. The buyer paid about $0.82 per contract, so shares would need to be closer to $9 even at expiration for the trade to profit. There was also heavy activity ...