Shares of lithium mining companySigma Lithium (SGML) are up 174 percent over the past year, thanks to a view by investors that rising electric vehicle production will require more of the metal. One trader sees the stock cooling off in the months ahead. That’s based on the July $22.50 puts. With 161 days until expiration, 3,100 contracts traded compared to a prior interest of 113, for a 27-fold rise in volume. The buyer of the puts paid $1.78. Shares recently traded for about $29.50, so they’d need to lose $7, or about 24 percent of their value for the option to move in-the-money. ...

Shares of cybersecurity companyPalo Alto Networks (PANW) are down about 9 percent over the past year following a strong rally in the past few weeks. One trader sees further downside for shares ahead. That’s based on the January 2025 $135 puts. With 708 days until expiration, 10,502 contracts traded compared to a prior open interest of 322, for a 33-fold rise in volume on the trade. The buyer of the puts paid $15.10 to make the bearish bet. Palo Alto shares recently traded for about $165, so the stock would need to drop about $30, or about 20 percent, for the option to move in-the-mon...

Shares of healthcare diagnostics companySotera Health Company (SHC) have slid 15 percent over the past year, performing worse than the S&P 500. One trader sees a further decline ahead. That’s based on the August $17.50 put. With 191 days until expiration, 3,955 contracts traded compared to a prior open interest of 151, for a 26-fold rise in volume on the trade. The buyer of the puts paid $2.35 to make the bearish bet. Shares recently traded for about $18, so Sotera shares would only need to drop about 3 percent for the option to move in-the-money. The stock has been on a wild ...

Shares of footwear and accessory companySketchers U.S.A. (SKX) are up about 11 percent over the past year. One trader sees a decline in the months ahead. That’s based on the April $39 put options. With 74 days until expiration, 2,003 contracts traded compared to a prior open interest of 104, for a 19-fold rise in volume on the trade. The buyer of the puts paid $0.75 to make the downside bet. The stock last traded just under $45, so shares would need to drop about $6, or nearly 15 percent, for the options to move in-the-money. The strike price is still well under the stock’s 52-week l...

Shares of cryptocurrency mining companyRiot Platforms (RIOT) have been cut in half over the past year, even with shares more than double off their recent low. One trader sees the current rally continuing. That’s based on the September $8 calls. With 221 days until expiration, 7,034 contracts traded compared to a prior open interest of 195, for a 36-fold rise in volume on the trade. The buyer of the calls paid $1.96 to make the bullish bet. Shares recently went for about $7.50, making this an at-the-money trade. Shares have a 52-week low of $3.25, set just at the end of last year. The...

Shares of internet retailerWayfair (W) are down 60 percent over the past year. One trader sees that trend continuing over the next few months. That’s based on the May $50 puts. With 105 days until expiration, 14,221 contracts traded compared to a prior open interest of 416, for a 34-fold rise in volume on the trade. The buyer of the puts paid $5.05 to make the bearish bet. Shares recently traded for about $66, so they’d need to fall about 25 percent in the coming months for the option to move in the money. That’s a possible move, given that the stock has a 52-week low just over $28. ...

Shares of department store chainMacy’s (M) are down about in-line with the overall stock market over the last year. One trader sees a further decline ahead. That’s based on the May $19 puts. With 105 days until expiration, 20,012 contracts traded compared to a prior open interest of 346, for a 58-fold jump in volume on the trade. The buyer of the puts paid $0.77 to make the bearish bet. Shares recently traded for about $23.50, so they’d need to fall about $4.50, or nearly 25 percent, for the option to move in-the-money. The strike price is still well over the stock’s 52-week low of $...

Shares of package delivery companyUnited Parcel Service (UPS) are down about 10 percent over the past year. One trader sees a move higher for shares in the months ahead. That’s based on the March $195 calls. With 43 days until expiration, 33,836 contracts traded compared to a prior open interest of 130, for a staggering 261-fold rise in volume on the option. The buyer of the calls paid $1.45 to make the bullish bet. UPS shares recently traded for about $177, so shares would need to rise $13, or about 7.3 percent, for the potion to move in-the-money. That’s still well above the stock’...

Shares of battery technology companyQuantumScape (QS) have lost over 40 percent of their value in the past year, although shares have recently bounced more than 50 percent higher off their lows. One trader sees a further decline ahead. That’s based on the March $9 puts. With 44 days until expiration, 13,951 contracts traded compared to a prior open interest of 259, for a 54-fold rise in volume on the trade. The buyer of the puts paid $1.42. Shares recently traded for about $8.70, making the option about $0.30 in-the-money already. Shares have a 52-week low of $5.11, so a drop from he...

Gold mining companyAngloGold Ashanti (AU) has fared well in the past year, with a 20 percent gain. One trader sees a pullback in the coming months. That’s based on the April $20 puts. With 80 days until expiration, 5,002 contracts traded compared to a prior open interest of 115, for a 44-fold rise in volume on the trade. The buyer of the puts paid $0.90 to make the bearish bet. Shares currently trade just under $22, so they’d need to drop nearly 10 percent for the option to move in-the-money. Given the volatility in the gold space, such a move is possible before expiration. AngloGold...