Unusual Option Activity for October 5th, 2020 – SE,AMD,STM

Daily Synopsis

  • The S&P 500 -0.95% today while the NASDaq weakened by (-2.81%). The Russell 2000 advanced (+0.44%). The Dow ended in negative territory at (-0.48%)
  • The best performing sector was Real Estate(+1.62%) while Information Technology(-2.54%)was the worst performer.
  • Cyclical sectors showed relative outperformance early in the day and later gained steam on hopeful-sounding stimulus commentary that suggested Ms. Pelosi and Treasury Secretary Mnuchin were making serious progress towards a deal. Talks could continue this weekend with differences still remaining.
  • The industrials (+1.1%), energy (+1.0%), materials (+0.8%), and financials (+0.7%) sectors represented the cyclical gains. The real estate sector (+1.6%) advanced the most, though. Conversely, the same enthusiasm didn’t apply to the mega-caps and other technology stocks, which outperformed the previous day.
  • Touching on the jobs data, which was understandably drowned out in today’s health concerns and stimulus news, the headline nonfarm payrolls figure was 661,000 (consensus 800,000). The unemployment rate declined to 7.9% (consensus 8.2%) from 8.4% in August, but the labor force participation rate fell to 61.4% from 61.7%.
  • In other interesting developments, the S&P 500 closed below its 50-day moving average (3362), and WTI crude futures dropped 4.3%, or $1.66, to $37.05/bbl — but the weaker prices didn’t drag on the energy stocks.
  • Looking ahead, investors will receive the ISM Non-Manufacturing Index for September on Monday.

Index Summary -

S&P 500 : (-0.95%); NasDaq : (-2.81%);
Russell 2000 :(+0.44%); Dow :(-0.48%);
Vix :26.7 (+3.48%); [+4.74%]; {-0.54%}

Sector Summary -

Three highest sectors for today were –
Real Estate: (+1.62%); Utilities: (+1.18%); Industrials: (+1.12%)
Three lowest sectors for today were –
Information Technology: (-2.54%); Communication Services: (-1.98%); Health Care: (-0.91%)

Commodities/Futures -

(1-day %), [5-day %], {10-day %}

Currency –
USD Index :93.909 (0.0%); [-0.02%]; {-0.57%}
BC :10550 (0.0%); [-2.45%]; {+2.63%}

Precious Metals –
Gold :1907.6 (-0.39%); [+0.31%]; {+2.17%}
Silver :24.029 (-0.25%); [-1.68%]; {+4.17%}

Farming –
Soybeans :1020.75 (0.0%); [+2.79%]; {+0.62%}
Corn :379.75 (0.0%); [+4.11%]; {+3.05%}
Coffee :108.95 (0.0%); [-0.55%]; {-1.4%}

Industrials –
Crude :37.05 (0.0%); [-5.7%]; {-7.21%}
Nat Gas :2.438 (0.0%); [-4.8%]; {+14.73%}
Copper :2.9775 (+0.03%); [-0.17%]; {-0.5%}

Spac Corner
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price.

SPAC ETF : (-0.42%)
Top 5 Highest SPAC % Changes –
1. RMG- 11.5 0.85 (+7.98%); 52 week high :11.88
2. LACQ- 10.8 0.27 (+2.56%); 52 week high :13.67
3. NHIC- 9.92 0.19 (+1.95%); 52 week high :9.92
4. DEH- 9.9 0.12 (+1.23%); 52 week high :9.94
5. KBLM- 11.1 0.13 (+1.19%); 52 week high :11.5

Top 5 Lowest SPAC % Changes –
1. SHLL- 44.91 -4.92 (-9.87%); 52 week high :58.66
2. DPHC- 23.4 -1.57 (-6.29%); 52 week high :31.8
3. SPAQ- 14.35 -0.7 (-4.65%); 52 week high :21.6
4. FMCI- 22.9 -1.07 (-4.46%); 52 week high :28.64
5. KCAC- 15.93 -0.72 (-4.32%); 52 week high :25.75

Top 5 Spacs by Volume –

1. SHLL- 44.91 -4.92 (-9.87%); Volume :7,395,378; ADV:7,982,213
2. CCXX- 9.9 -0.22 (-2.17%); Volume :5,005,482; ADV:1,998,296
3. SPAQ- 14.35 -0.7 (-4.65%); Volume :4,474,966; ADV:8,409,528
4. RMG- 11.5 0.85 (+7.98%); Volume :4,422,660; ADV:254,556
5. CCIV- 9.74 -0.02 (-0.21%); Volume :3,925,673; ADV:900,071

Top 5 Spacs Trading Above ADV –

1. RMG- 11.5 0.85 (+7.98%); ADV:254,556: Multiple of ADV:17.37
2. DFPH- 10.3 -0.08 (-0.77%); ADV:49,440: Multiple of ADV:7.27
3. YAC- 9.87 0.0 (0.0%); ADV:156,304: Multiple of ADV:6.52
4. ETAC- 9.75 -0.03 (-0.31%); ADV:190,621: Multiple of ADV:4.72
5. CHPM- 10.06 -0.09 (-0.89%); ADV:88,299: Multiple of ADV:4.55

Dark Pool Summary -

Highest Dark Pool buys by rank –
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Options Fast Facts -

CBOE Put/Call Ratio – 0.54
Highest Multiple Over Daily Average – AXTA with 13x the ADV of 3907. There were 49686 calls and 1103 puts.
Ticker with Most Contracts –NKLA with 500740 contracts traded today with an AVD of 245076. There were 267909 calls and 232831 puts.
Largest Put / Call Ratio – AEO with a 36 P/C ratio. There were 30449puts and 851 calls.
Largest Call / Put Ratio – ZYME with a118 C/P ratio. There were 10174 calls and 86 puts.

*Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k
Yesterday's Picks -

SRNE 10.38 -0.31,(-2.9%)
ACMR 73 -2.38,(-3.16%)
GSX 93.1 -0.1,(-0.11%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:STM 32.23,-0.98(-2.95%) Earnings: 2020-10-22
Name :STMicroelectronics NV Special Considerations : 52WkHigh
Industry : Electronic Technology Sector : Semiconductors

Option Information –
Today’s Option Volume: 39048; OptionOI: 150844
Multiple of ADV: 7; ADV: 5853
Total Calls: 36774; Total Puts: 2274
Calls at Ask: 49.6%; Calls at Bid: 40.1%
Puts at Ask: 48.1%; Puts at Bid: 40.0%
C/P Ratio: 16

Noteable Strikes

News

No news for today

Potential Sympathy Stocks

TXN, NXPI, ADI, MXIM

Impression

This stock was mentioned twice on Aug-26-2020 and Sep-15-2020 at a closing price of 30.91and 31.4.
The Call Ask Percent looks good. The Multiple of ADV is okay. The Call/Put Ratio appears bullish.

Company Description for :STM

STMicroelectronics NV designs, develops, manufactures and markets products, which offers discrete and standard commodity components, application-specific integrated circuits, full custom devices and semi-custom devices for analog, digital and mixed-signal applications. It operates through the following segments: Automotive and Discrete Group, Analog and MEMS Group, and Microcontrollers and Digital ICs Group. The Automotive and Discrete Group segment comprises of all dedicated automotive ICs, and discrete and power transistor products. The Analog and MEMS Group segment comprises of low-power high-end analog ICs, smart power products for industrial, computer and consumer markets, touch screen controllers, low power connectivity solutions and metering solutions for smart grid and all MEMS products. The Microcontrollers and Digital ICs Group segment comprises of general purpose and secure microcontrollers, EEPROM memories, and digital ASICs. The company was founded in June 1987 and is headquartered in Plan-Les-Ouates, Switzerland.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:AMD 81.8,-3.06(-3.61%) Earnings: 2020-10-27
Name :Advanced Micro Devices, Inc.
Industry : Semiconductors

Option Information –

OCT’30 20 95.0C – 2,000 @ 2.60 were traded at 13:11:00 as a BLOCK Spot Price: 84.11
OCT’30 20 100.0C – 2,000 @ 1.95 were traded at 15:08:00 as a BLOCK Spot Price: 85.06

News –

No news for today

Sympathy Stocks for :AMD

INTC, NVDA, TXN, MCHP

Company Description for :AMD

(‘AMD’, ‘Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses. It operates through the following segments: Computing & Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles. The company was founded by W. J. Sanders III on May 1, 1969 and is headquartered in Santa Clara, CA.’)

Second Classic Unusual Options Activity Pick -

Ticker:SE 155.36,-4.64(-2.9%) Earnings: 2020-11-18
Name :Sea Ltd. (Singapore)
Industry : Internet Software/Services

Option Information –

OCT’16 20 172.5C – 796 @ 3.20 were traded at 15:58:00 as a BLOCK Spot Price: 159.94
OCT’16 20 172.5C – 796 @ 3.10 were traded at 15:02:00 as a BLOCK Spot Price: 159.95

News –
No news for today

Sympathy Stocks for :SE

(‘WMB’, ‘EPD’, ‘ENB’, ‘SRE’)

Company Description for :SE

(‘SE’, ‘Sea Ltd. (Singapore) is an internet and mobile platform company. The firm engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce and Digital Financial Services. The Digital Entertainment segment offers access to game-related content through game forums, group voice chat, live streaming, and other user socializing functions on the Garena mobile app and desktop application. The E-Commerce segment manages third-party marketplace through Shopee mobile app and websites that connects buyers and sellers. The Digital Financial Services segment includes financial services to individuals and businesses, including e-wallet and payment services through the AirPay mobile app and AirPay counter applications on mobile phones or computers. The company was founded by Xiao Dong Li, Gang Ye and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.’)

What are your thoughts?