Shares of ride share companyUber (UBER) have been in a decline for several months, although shares did pop higher on Tuesday thanks to the company’s forecast for its first profitable earnings report. One trader sees the downtrend continuing, however. That’s based on the June $25 puts. With 267 days until expiration, over 9,450 contracts traded against a prior open interest of 181 contracts, for a 52-fold rise in volume. The buyer of the puts paid about $0.50 to make the trade. With shares around $44, they would need to drop nearly $20, or over 40 percent, for the trade to move in-the...

Shares of biotech firmGilead Sciences (GILD) have been trending slightly higher in the past year. One trader sees the opportunity for shares to move higher in the months ahead. That’s based on the June $75 calls. With 268 days until expiration, over 30,430 contacts traded against ta prior open interest of 1,121, for a 29-fold jump in volume. The buyer of the calls paid $4.80 to make the trade. Shares of the biotech recently traded around $71, so they would need to rally just over 5 percent for the trade to move in-the-money before expiration. While shares have been trending higher...

Shares of TV streaming platformRoku (ROKU) have been trending down since July. One trader sees the possibility for a rebound in the months ahead. That’s based on the December $325 calls. With 87 days until expiration, over 5,070 contracts traded, a 34-fold increase in volume compared to the prior open interest of 150. The buyer of the calls paid $30.08 to make the trade. Shares currently trade around $324, making this an at-the-money trade. Options should rise dollar-for-dollar with shares, less any declining time premium. Shares have traded as high as $490 in the past year, hitting ...

Shares of stock brokerage firmRobinhood (HOOD) have been declining since their IPO. One trader sees the decline continuing for the next few months. That’s based on the January $31 puts. With 123 days until expiration, over 1,500 contracts traded against a prior open interest of 114, for a 13-fold rise in volume. The buyer of the puts paid $2.80 to make the buy. Shares last traded around $42, so they would need to drop about $9, or more than 25 percent for the option to move in-the-money. Robinhood has been in the spotlight for its business model, where it receives payment for orde...

Shares of cable giantComcast Corporation (CMCSA) slid on Tuesday as the company warned on declining cable subscribers. One trader sees the room for a further drop in the months ahead. That’s based on the November $50 puts. With 64 days left on the trade, over 32,100 contracts traded against an open interest of 201 contracts, for a 160-fold jump in volume. The buyer of the puts paid $0.85 to make the trade. With shares currently around $55, it would take a drop of just under 10 percent for the options to move in the money. Even with the recent drop, shares have performed about in l...

Shares of megabankWells Fargo (WFC) have traded mixed over the past month, as the company largely missed on earnings. Over the past year, shares have been trending up. However, one trader sees a possibility for a big drop in shares at some point before next spring. That’s based on the April $32.50 puts. Over 16,015 contracts traded, a 96.5-fold rise in volume compared to the prior open interest of 166 contracts. The buyer paid $0.84 for the contract. The trade has 211 days to play out. With shares around $45, they would need to drop $12.50, or over 27 percent, to move in-the-money. ...

Shares of pharmaceutical giantMerck & Co (MRK) have been trading roughly flat over the past six months following a selloff in shares. One trader sees the potential for a move higher in the coming months. That’s based on the November $75 calls. With 67 days left on the trade, over 41,300 contracts traded against a prior open interest of 494, for an 84-fold rise in volume. The buyer of the calls paid $1.88 to make the trade. Shares trade for around $73.50, so shares would need to rise $1.50, or about 2 percent for the trade to move in-the-money. Shares have traded as high as $86 in...

Shares of media firmDiscovery (DISCK) have been trending down over the last month. However, one trader sees the potential for a big return over the next year. That’s based on the January 2023 $40 calls. With 494 days until expiration, over 5,000 contracts traded, a 12-fold rise in volume from the prior open interest of 407 contracts. The buyer of the calls paid about $2.08 to make the trade. Shares of the company last traded just over $25 per share, so the stock would need to rise $15, or about 60 percent, for the option to move in-the-money by expiration. The company saw shares r...

Shares of semiconductor firmAdvanced Micro Devices (AMD) have traded flat over the past month following a longer-term rally. One trader sees that rally resuming in the coming weeks. That’s based on the October 8 $115 calls. With 28 days until expiration, just under 6,300 contracts traded against a prior open interest of 162, for a 39-fold rise in volume. The buyer of the calls paid $1.81 to make the trade. With shares around $106, they’d need to rise $9, or about 8.4 percent in the next month for the option to move in-the-money. Shares surged as high as $122 at the start of August...