Shares of energy giantExxonMobil (XOM) have been on a tear this year, with an 85 percent rally. One trader sees a pullback in the months ahead. That’s based on the February 2023 $80 puts. With 77 days until expiration, 4,511 contracts traded compared to a prior open interest of 183, for a 25-fold rise in volume on the trade. The buyer of the puts paid $0.44 to make the downside bet. The stock last traded for just under $112, so shares would need to fall about $32, or nearly 30 percent from current levels for the trade to move in-the-money. A move back to the $80 range would unwind...

Shares of iron ore producerVale (VALE) are up 22 percent in the past year, but are still well under the year’s highs. One trader sees shares moving higher through the first half of 2023. That’s based on the June 2023 $18 calls. With 196 days until expiration, 21,539 contracts traded compared to a prior open interest of 822, for a 26-fold rise in volume on the trade. The buyer of the calls paid $1.25 to get into the trade. Shares recently traded for about $16, so the stock would need to rise $2, or about 12.5 percent, for the option to move in-the-money. That’s still well under Vale’s...

Shares of apparel chainBurlington Stores (BURL) are down about 33 percent in the past year. One trader sees a further decline ahead for shares. That’s based on the March 2023 $150 put. With 106 days until expiration, 3,233 contracts traded compared to a prior open interest of 110, for a 29-fold rise in volume on the trade. The buyer of the puts paid $7.55 to make the bearish bet. Shares recently traded for just under $200, so it would take a nearly 25 percent drop in shares for the options to move in-the-money. The stock is up quite strongly from its 52-week low in September just und...

Shares of packaged food companyThe Kraft Heinz Company (KHC) are up about 12 percent over the past year. One trader sees a further long-term uptrend for shares playing out through next summer. That’s based on the July 2023 $45 calls. With 233 days until expiration, 3,195 contracts traded compared to a prior open interest of 216, for a 15-fold rise in volume on the trade. The buyer of the calls paid $1.09 to make the bet. Kraft Heinz shares recently traded for about $39, so the stock would need to rise $6, or about 15 percent for the option to move in-the-money. That is a bit aggressi...

Shares of investment bankMorgan Stanley (MS) are down about 12 percent in the last year, but have been trending higher in recent weeks. One trader sees the current uptrend continuing in the next few sessions. That’s based on the December $94 call. With 18 days until expiration, 2,907 contracts traded compared to a prior open interest of 135, for a 22-fold rise in volume on the trade. The buyer of the calls paid $0.85 to make the bet. Shares recently traded for $90, so shares would need to rise $4, or just under 5 percent, in the coming days for the option to move in-the-money. That’s...

Shares of consumer goods giantUnilever (UL) are down just 6 percent in the past year, outperforming the S&P 500 by nearly 10 percent. One trader sees shares moving higher to close out the year. That’s based on the December $50 calls. With 20 days until expiration, 8,516 contracts traded compared to a prior open interest of 388, for a 22-fold rise in volume on the trade. The buyer of the calls paid $0.60 to make the bet. Shares recently traded just over $49, making this an at-the-money trade. Unilever shares have traded as high as $54 in the past year. The consumer goods compan...

Shares of electric car manufacturerTesla Motors (TSLA) hit a 52-week low earlier this week. The automaker has been caught up in CEO Elon Musk’s acquisition of Twitter. One trader is betting on a rebound ahead. That’s based on the December $173.33 calls. With 22 days until expiration, 15,158 contracts traded compared to a prior open interest of 511, for a 30-fold rise in volume on the trade. The buyer of the calls paid $9.60 to make the bullish bet. Shares recently traded around $170, so the stock would need to rise about 2 percent for the options to move in-the-money. That’s still we...

Shares of chipmakerIntel Corporation (INTC) have slid 40 percent in the past year. One trader sees a potential rebound in the next 10 months. That’s based on the September 2023 $40 calls. With 295 days until expiration, 5,076 contracts traded compared to a prior open interest of 204, for a 25-fold rise in volume on the trade. The buyer of the calls paid $0.88 to make the bet. Intel shares recently traded for just under $29, so they’d need to rise $11, or about 38 percent for the option to move in-the-money. The strike price of $40 would still leave the stock well under its 52-week...

Shares of supplemental insurance companyAflac (AFL) are up 27 percent in the past year, fueled in part by a strong rally in recent weeks. One trader sees a pullback in the coming weeks. That’s based on the December $70 put. With 24 days until expiration, 2,539 contracts traded compared to a prior open interest of 101, for a 25-fold rise in volume on the trade. The buyer of the puts paid $1.33 to make the bearish bet. Shares recently traded for about $71, so the option is about $1 out-of-the-money. The company has had mixed results in the past year. Earnings have improved by 80 per...

Shares of Chinese internet retailerAlibaba Group Holding Limited (BABA) are down over 45 percent in the past year. One trader sees a further decline in shares by mid-2024. That’s based on the June 2024 $60 puts. With 577 days until expiration, 3,147 contracts traded compared to a prior open interest of 126, for a 25-fold rise in volume on the trade. The buyer of the puts paid $8.48 to make the bet. Shares recently traded for about $85, so they would need to drop $25, or about 30 percent, for the options to move in-the-money. With a 52-week low of $58, such a move is possible in the n...