Shares of electric carmakerTesla Motors (TSLA) have been trending higher in recent weeks, aided by a report that the company has continued full production amid a global chip shortage. One trader sees shares moving higher in the coming weeks. That’s based on the October 22 $830 calls. With 15 days until expiration, over 12,175 contracts traded against a prior open interest of 449, for a 27-fold rise in volume. The buyer of the calls paid $10.08. Shares last traded around $780, so the option would move in-the-money with a mere 6.4 percent increase in the share price. That’s certainly p...

Shares of pharmaceutical giantMerck (MRK) recently jumped higher on news of a Covid drug that could substantially reduce hospitalizations. One trader sees the trend continuing. That’s based on the November $100 calls. With 44 days on the trade, over 9,850 contracts traded against a prior open interest of 249, for a 40-fold rise in volume. The buyer of the calls paid $0.29 to make the trade. Even with the recent jump in price, shares are now only up about 5 percent over the past year. Shares currently trade around $83, so the price would need to rise about 20 percent for the options t...

Shares of tech giantMicrosoft (MSFT) have traded down over the past few weeks, in line with the broader market. One trader sees a possibility for a rebound back to the company’s old all-time highs in the next month. That’s based on the November 5th $310 calls. With 31 days left on the clock, over 3,800 contracts traded, a 33-fold rise in volume from the prior open interest of 116 contracts. The buyer of the calls paid $2.01 for the trade. The tech giant’s various divisions have been operating strongly over the past year, with revenues up 21 percent and earnings up 47 percent. Besides...

Shares of cosmetics firmCoty (COTY) have been range-bound over the past few months, with a few periodic jumps higher. One trader sees the possibility for a move higher in the coming months. That’s based on the February $9 calls. With 137 days left until expiration, over 32,025 contracts traded, a 52-fold jump in volume from the prior open interest of 615. The buyer of the calls paid $0.76 for the contracts. Shares are just under $8, so they would need to rise about 15 percent for this option to move in-the-money. The stock has jumped as high as $10.50 in recent months, so it’s possib...

Shares of Chinese e-commerce giantAlibaba (BABA) have sold off in recent weeks on increased regulations out of China as well as a slowing economy there. One trader sees the possibility for a rebound in the next few months. That’s based on the March $130 calls. With 138 days until expiration, over 4,400 contracts traded, a 33-fold rise in volume from the prior open interest of 134. The buyer of the calls paid $29.70 to make the trade. With shares around $150, the calls are about $20 in-the-money. That leaves about $9.70 in time premium in the option. Shares have traded as high as $...

Shares of megabankBank of America (BAC) hit a new 52-week high this week, even amid the latest market volatility. One trader sees the move higher, just a hair above the price the stock hit in June, as a sign that shares may be due for a drop. That’s based on the October 1 $43 puts. Expiring tomorrow, over 8,300 contracts traded compared to a prior open interest of 309, for a 27-fold jump in volume. The buyer of the puts paid $0.48. Shares are just over $43, a 52-week high for the stock, making this an at-the-money trade. The low price makes for a big potential winner, although the pr...

Shares of mattress firmTempur Sealy International (TPX) have more than doubled in the past year. One trader sees the potential for shares to move far higher in the coming months. That’s based on the January $60 calls. With 114 days until expiration, over 10,050 contracts traded against an open interest of 2020, a 50-fold rise in volume. The buyer of the calls paid $0.93 to make the trade. Shares are currently just under $50, so they would need to rise $10, or another 20 percent higher for the option to move in-the-money. Given the rise in shares over the past year, that’s certainly a...

Shares of megabankUBS Group AG (UBS) have been trending higher the past year, with a few sizeable drops during periods of market fears. One trader sees the possibility for another such drop in the next few months. That’s based on the February $12.50 puts. With 143 days left on the trade, over 6,025 contracts traded, a 54-fold jump in volume from the prior open interest of 112. The buyer of the puts paid $0.25 to make the trade. With shares currently in the high $15 range, it would take a drop of over 22 percent for the option to move in-the-money. Such a move is big, but during a mar...

Shares of engineering and construction materials firmJohnson Controls International (JCI) have been in a steady uptrend for more than a year. One trader is betting that steady progress higher will continue. That’s based on the April 2022 $75 calls. With 199 days until expiration, over 5,200 contracts traded against a prior open interest of 134, for a 39-fold rise in volume. The buyer of the calls paid $4.60 to make the trade. Shares of JCI are already up 78 percent over the past year, far beating the overall stock market. Shares trade at about 23 times forward earnings, a solid disco...

Shares of cloud providerSalesforce.com (CRM) jumped higher on Thursday following solid earnings and a bullish full-year outlook. One trader sees the possibility for a move higher in the coming weeks. That’s based on the October 29 $280 calls. With 35 days until expiration, over 2,200 contracts traded, a 22-fold rise in volume from the prior open interest of 101 contracts. The buyer of the calls paid $4.98 to make the trade. The recent rally in shares brings the stock up 9 percent over the past year, sizably lagging the S&P 500 index. Over a longer timeframe however, the software ...