Option Traders Pounce on this Week’s Options Expiration for this Semiconductor Company

NVIDIA Corporation (NASDAQ: NVDA) traded through resistance on Wednesday on higher volume as the option activity surged. This is a good indication of interest and is way to narrow down the long list of optionable stocks that are out there. This interest is happening as the Nasdaq 100 passed through 10,000 for the second day in a row. Even President Trump jumped into the fray by tweeting on the milestone. The option activity on Wednesday was significant early in the trading ...
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The Bullish Unusual Option Activity for this Chinese EV Maker is Piling up

NIO Inc (NYSE: NIO) is a Chinese company that manufactures electric vehicles that are sold in the People’s Republic of China, Hong Kong, the United States, the United Kingdom and Germany. The company was recently upgraded by Goldman Sachs from neutral to buy and began to really take off after Nikola Corporation (NASDAQ: NKLA) began trading on June 4. The company also announced record deliveries in May on June 4, 2020. As the positive news piles up, so has the option ...
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Option Traders Looking More Closely at this Mobile Gaming Stock After Its Pullback

Zynga Inc (NASDAQ: ZNGA) is a mobile gaming company that has hits like Farmville, Mafia Wars and CityVille. The company began its turnaround in 2016 after going public in 2011. The hiring of the former Electronic Arts Inc (NASDAQ EA) executive Frank Gibeau helped initiate the turnaround that was declared complete in 2019. With more people staying at home, gaming companies have had an opportunity to shine. On May 29, 2020, the stock price of ZNGA broke out on high volume ...
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Option Traders Seeing a Top in High Yield Credit

It was less than a month ago when the Fed began buying bond ETFs like the iShares iBoxx $ High Yid Corp Bond ETF (NYSEARCA: HYG). This transition by the Federal Reserve was a major change in policy as they are now willing to take significant risks. This metamorphosis is one that could have been predicted as Japan pursued the same policy and who doesn’t want to be long the Bank of Japan. In all seriousness, the move was prompted ...
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As Markets Melts Up, Option Traders Eye Banks Next Wave Higher

Financials are starting to feel their oats as they continue to assume leadership. Part of the driving force on Wednesday had to be the rise in the 10-year U.S. Treasury yield. A steeper yield curve means greater potential to make money in a borrow short and lend long strategy. That means that banks are able to borrow for short amounts of time at a low yield and lend for longer periods of time at a higher yield. The spread, called ...
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Big Time Option Trade Placed on Retailer, Hedge or Bullish?

Macy’s Inc (NYSE: M) is a company whose share price has struggled until recently. Year-to-date the price is down over 55% but in the past week is up nearly 30%. Last week, the price broke out of a symmetrical triangle that has been forming since its March low near $4. With companies that have such flawed fundamentals and in an environment that is difficult for brick and mortar retailers, what is the next move for Macy’s? The price behavior would suggest ...
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Option Bulls Look to Pick up this Ag Stock at a Discount

  Mosaic Co (NYSE: MOS) is a potash and concentrated phosphate producer in North America and around the world. The company has seen a material negative impact to EPS and EBITDA from Q1 2019 to Q1 2020. However, the company was able to generate positive operating cash flow of $190 million in Q1 2020 versus negative cash flow of $176 million in Q1 2019. As the company looks to settle contracts, they are anticipating a 2.5 years of price improvement starting ...
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Option Traders Taking a Closer Look at Consumer Cyclicals as the Sector Nears February High

The Consumer Discretionary SPDR Select Sector ETF (NYSEARCA: XLY) finished higher for the week last week but for only the second time in the past nine weeks, it underperformed the Consumer Staples SPDR Select Sector ETF (NYSEARCA: XLP). While one week doesn’t make a trend, it is a sign and as the price approaches Pre-COVID highs it does make you wonder how much is left in the tank. The top holdings in XLY are Amazon.com Inc (NASDAQ: AMZN), Home Depot Inc ...
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