Shares of cryptocurrency minerRiot Blockchain (RIOT) have lost nearly three-quarters of their value in the past year, but have risen in recent sessions as cryptos have trended higher. One trader sees shares moving lower in the next month. That’s based on the February $5 puts. With 35 days until expiration, 10,021 contracts traded compared to a prior open interest of 195, for a 51-fold rise in volume on the trade. The buyer of the puts paid $1.15. Shares recently traded just under $5.50, so the option is already about $0.50 in-the-money. With a 52-week low of $3.25, set just in Decemb...

Shares of natural gas producerChesapeake Energy (CHK) are up 27 percent in the past year amid a strong energy market. One trader sees a further rally in shares in 2023. That’s based on the January 2024 $100 calls. With 372 days until expiration, 6,499 contracts traded compared to a prior open interest of 229, for a 28-fold rise in volume on the trade. The buyer of the calls paid $9.70 to make the bullish bet. Shares recently traded around $88, so they would need to rise about $12, or over 10 percent, for the options to move in-the-money. Chesapeake has traded as high as $107 in the p...

Shares of defense contractorLockheed Martin (LMT) are up about 30 percent over the past year as traders have moved into defensive stocks. One trader sees a pullback in shares in the coming weeks. That’s based on the March $410 puts. With 64 days until expiration, 5,029 contracts traded compared to a prior open interest of 160, for a 31-fold rise in volume on the trade. The buyer of the puts paid $4.90 to make the bearish bet. Shares recently traded for about $460, so the stock would need to drop about $50, or just over 10 percent, for the option to move in-the-money. Shares have come...

Shares of graphics processing unit manufacturerNvidia (NVDA) have lost nearly half their value in the past year. One trader sees a further decline in the weeks ahead. That’s based on the February 3 $150 put. With 24 days until expiration, 7,958 contracts traded compared to a prior open interest of 327, for a 24-fold rise in volume on the trade. The buyer of the puts paid $8.75. Shares recently traded for about $150, making this an at-the-money trade. The stock is off a 52-week high over $289 per share, with a 52-week low of $108 per share. Earnings have slid 72 percent in the past...

Shares oil and gas exploration companyDiamondback Energy (FANG) are up about 5 percent over the last year, significantly lagging others in the energy space. One trader sees a decline for the stock in the weeks ahead. That’s based on the March $135 puts. With 66 days until expiration, 7,643 contracts traded compared to a prior open interest of 110, for a 70-fold rise in volume on the trade. The buyer of the puts paid $10.30 to make the trade. Shares recently traded for about $134, meaning the option is already about $1.00 in-the-money. Shares have a 52-week low of about $104, so there...

Shares of healthcare product producerBausch Health Companies (BHC) have lost three quarters of their value in the past year. One trader sees a rebound in the weeks ahead. That’s based on the February $8 calls. With 42 days until expiration, 26,688 contracts traded compared to a prior open interest of 665, for a 40-fold rise in volume on the trade. The buyer of the calls paid $0.37 to make the bullish bet. Shares recently traded just under $7, so the stock would need to rise $1.15, or about 17 percent for the option to move in-the-money. That’s still well under the stock’s 52-week hig...

Shares of electric truck manufacturerNikola Corporation (NKLA) are down 80 percent over the past year. One trader sees a further decline ahead. That’s based on the January 2024 $2 puts. With 379 days until expiration, 40,037 contracts traded compared to a prior open interest of 967, for a 41-fold rise in volume on the trade. The buyer of the puts paid $1.08 to make the bearish bet. Shares recently traded for about $2.20, so the stock would need to drop about 10 percent for the options to move in-the-money. That would also take shares just under the most recent 52-week low of $2.01 pe...

Shares of drug manufacturerNovartis (NVS) are slightly up over the past year. One trader sees a further rally occurring in the first half of the year. That’s based on the July $85 calls. With 197 days until expiration, 3,071 contracts traded compared to a prior open interest of 119, for a 26-fold rise in volume on the trade. The buyer of the calls paid $8.30 to make the bullish bet. Shares recently traded just under $91, meaning the options are more than $5 in-the-money already. That makes the premium on the options far lower than stated. It also means on a further rally that the ...

Shares of oil and gas majorOccidental Petroleum Corporation (OXY) are up 112 percent over the past year. One trader sees a pullback coming in the next 18 months. That’s based on the June 2024 $50 puts. With 534 days until expiration, 5,001 contracts traded compared to a prior open interest of 101, for a 50-fold rise in volume on the trade. The buyer of the puts paid $6.45 to make the bet. Occidental shares recently traded for about $62, so the stock would need to decline $12, or about 20 percent, for the options to move in-the-money. That’s a reasonable range, given how volatile e...

Shares of analytics software companyMicroStrategy (MSTR) are down 75 percent over the past year, largely due to the company’s decision to leverage up its balance sheet to buy Bitcoin. One trader sees a modest rebound in the coming weeks. That’s based on the January $160 calls. With 18 days until expiration, 4,737 contracts traded compared to a prior open interest of 199, for a 24-fold rise in trading volume. The buyer of the calls paid $3.65 to make the bet. Shares recently traded for about $130, so the stock would need to jump over 20 percent in under a month for the option to move ...