Unusual Options Activity

At least one trader sees some big downside ahead for Occidental Petroleum (OXY). That’s based on the 23,860 contracts traded on the February 2021 $8 put. With shares around $9.80, that implies a 19 percent decline in the next 119 days. The prior open interest on the option was 1,107 contracts, making for a 21-fold rise in volume. The trader also paid about $0.74 for the option. Shares would therefore need to hit $7.30 at expiration to profit. Shares of Occidental have ...
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Although shares of Sibanye Stillwater (SBSW) are at a 52-week high, one trader sees shares moving even higher. The April 2021 $15 calls on the company saw a 20-fold rise in volume. Over 2,580 contracts traded hands against a prior open interest of 127. The bet, expiring in 176 days, is that the precious metals mining company will rise another $1.50 from its current price near $13.50. The calls will move in-the-money on a further 11 percent move in shares. The buyer ...
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Shares of Swiss bank UBS Group AG (UBS) had a decent day on Tuesday, as the bank reported its strongest third-quarter earnings in a decade. Traders see more upside ahead. That’s shown by the 16-fold rise in volume on the August 2021 $12.50 calls. The options saw over 1,650 contracts trade against a prior interest of 101. The option is at-the-money, meaning the trade should rise dollar for dollar with any move higher in the bank’s stock. The option expires in 303 ...
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One of the top-performing stocks of the past year, at least one trader sees a drop ahead for Nvidia (NVDA). That’s evidenced by the January 2022 $450 puts. Over 1,060 contracts traded hands, a 6-fold rise over the 180 contracts with open interest. Expiring in 458 days, the bet would move in-the-money if shares dropped 18 percent from their current price around $548 per share. The trader paid about $58.50 per contract on average. The graphics processing company is up 181 percent ...
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Over 5,300 contracts traded on a January 2023 $4 call option on General Electric (GE). That’s a 19-fold rise in volume against the prior open interest of just 285 contracts. The option, expiring in 823 days, is over $3 in-the-money, given the current share price at $4. For the option buyer to profit at expiration, shares need to trade at $8 or higher. The trade comes as GE continues to struggle, as profits from its aviation division have dried up, leading to ...
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Over 2,000 contracts traded on January 2023 $30 puts on Wells Fargo (WFC). That’s a 16-fold increase in interest given the prior 122 open contracts in the trade. The puts, which are about $7 in-the-money, expire in 826 days. The long-dated trade, known as a LEAP, is a bet that the bank’s shares will head lower. The trader paid just over $10.00, so shares will need to trade under $20 at expiration for the trade to profit. Shares of the megabank are ...
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Over 3,200 contracts traded on the February 2021 $30 calls on Social Capital Hedosophia Holdings Corp (IPOB). That’s a 28-fold increase in volume from the prior number of open contracts near 117. With shares trading around $26, shares need to rally about 15 percent for the option contract to move in-the-money. The call buyer paid about $3.10 on average for the options, which expire in 127 days. IPOB is a SPAC, a specialty purpose acquisition company. Also known as a “blank check ...
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Over 1,950 contracts traded on the November 27th $25 calls on Carnival Cruise (CCL). The prior open interest on the trade was 137 contracts, showing a 14-fold rise in volume. The trade, expiring in 44 days, has a strike price 75 percent higher than where shares currently trade around $14.25. With that big of a price difference, it’s no surprise that the buyer of the contract only paid about $0.13, or just $13 per contract, on average. As it’s unlikely for shares ...
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