Unusual Options Activity

Cannabis stocks exploded higher at the start of the year and have now given up their gains. Tilray (TLRY), for instance, started the year under $10, spiked to $60, and has now lost most of its value to trade at $15. One trader sees a rebound ahead. Over 2,970 contracts traded on the August $30 calls, a 21-fold rise in volume from the prior open interest of 141. The buyer paid about $0.58 for the options, which will require shares to about ...
Read More

Chinese search giant Baidu (BIDU) has just completed a head and shoulders pattern, undoing its recent gains and now trades back at a five-month low. One trader now sees the potential for a bounce higher. That’s based on the July $185 calls. Over 10,197 contracts traded against a prior open interest of 299, for a 34-fold rise in volume. The buyer of the option which has two months to play out, paid about $13.50 for the contract. This is a slightly in-the-money ...
Read More

Casinos have been a hot gamble with investors over the past year. Pandemic-driven shutdowns led to a collapse in business. But speculation on reopening has been good for the space. One trader sees room for a further rally in Las Vegas Sands (LVS). That’s based on the August $60 calls. Expiring in 95 days, and with shares near $56, the trade would move in-the-money if shares rallied less than 10 percent higher from here. Over 22,700 contracts traded against an open interest ...
Read More

While the pandemic lockdowns are all but over, at least one trader expects shares of Zoom Communications (ZM) to regain some of their recent decline. That’s based on the September $290 calls. Nearly 6,300 contracts traded against a prior open interest of 114, for a 55-fold jump in volume. The trade has 126 days to play out, and with shares right near $290, it’s an at-the-money trade. The buyer of the call paid about $36.15 to make the trade. With an at-the-money ...
Read More

Shares of office real estate investment trust Vornado Realty Trust (VNO) are down over 50 percent from their peak price in 2015. While recovering from last year’s work-from-home trends, one trader sees a decline in shares in the coming months. That’s based on the September $40 puts. With 127 days until expiration, over 10,535 contracts traded against a prior open interest of 175, for a 60-fold rise in volume. With shares around $46, the option would move in-the-money on a 15 percent ...
Read More

Shares of semiconductor company Micron Technology (MU) have been caught up in the recent tech selloff. One trader sees the potential for a bounce higher in the near future. That’s based on the August $82.50 calls. Over 12,730 contracts traded, a 35-fold rise in volume from the prior open interest of 360 contracts. The buyer of the option paid $6.25 to make the trade, which expires in 100 days. With shares of Micron selling off to around $80, the option will move ...
Read More

Big data firm Palantir Technologies (PLTR) has lost half its value from a speculative peak earlier in the year. One trader sees a rebound in the coming weeks. That’s based on the June 11 $24.50 calls. Expiring in 31 days, over 3,900 contracts traded against an open interest of 201, for a 19-fold rise in volume. With shares trading around $20 in recent sessions, the option would move in-the-money on a 20 percent move higher in shares. The buyer of the call ...
Read More

Oil and gas exploration company Devon Energy (DVN) has been in a strong uptrend the past few months as oil prices have trended higher. One trader sees a further rally in the months ahead. That’s based on the October $30 calls. Over 12,325 contracts recently traded against an open interest of 481, for a 26-fold rise in volume. Expiring in 158 days, and with shares near $25, it would take another 20 percent rally in shares for the option to move ...
Read More