Unusual Option Activity for Dec-02-2020 SQ, NIO

Daily Synopsis -

    • The S&P 500 eked out a gain of +0.21% today while the NASDaq had a small gain of (+0.12%). The Russell 2000 advanced (+0.1%). The Dow ended in positive territory at (+0.25%)
    • The best performing sector was Energy(+3.25%) while Materials(-1.28%)was the worst performer.
    • The market received an afternoon boost after Democratic Congressional leadership supported the $908 billion bipartisan stimulus bill proposed yesterday as a starting point for negotiations. Note, the bill is less than the $2 trillion package previously put forth by Democrats but higher than the $500 billion plan proposed by Republican Senators.
    • Follow-through gains were limited due to the lack of affirmation from the Republican side and an observation of a slower pace of recovery in the Fed’s Beige Book for November.
    • Separately, Pfizer (PFE 40.80, +1.39, +3.5%) and BioNTech (BNTX 121.09, +7.08, +6.2%) received emergency approval for their COVID-19 vaccine in the UK, sending shares noticeably higher ahead of a likely U.S. approval soon. The news had less of an effect on the broader market since it was largely expected.
    • Aside from the today’s M&A deal, Salesforce beat top and bottom-line estimates and issued upside revenue guidance for the next two quarters. NetApp (NTAP 59.23, +5.07, +9.4%) shares climbed 9% following its better-than-expected earnings results.
    • Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the ISM Non-Manufacturing Index for November, and the final Markit Services PMI for November on Thursday.
Index Summary / Sector Summary -

S&P 500 : (+0.21%); NasDaq : (+0.12%);
Russell 2000 :(+0.1%); Dow :(+0.25%);
Vix :20.77 (+1.93%); [-2.17%]; {-11.2%}
Three highest sectors for today were –
Energy: (+3.25%); Financials: (+1.09%); Communication Services: (+0.93%)
Three lowest sectors for today were –
Materials: (-1.28%); Real Estate: (-1.05%); Consumer Staples: (-0.83%)

Anticipated Earnings this Week -

Earnings info Monday –
No Earnings
Earnings info Tuesday –
NTAP 59.2 +5.04,(+9.31%)
HPE 11.52 +0.32,(+2.86%)
HOME 18.59 +0.18,(+0.98%)
MOMO 13.345 -0.225,(-1.66%)
VEEV 272.4 -11.8,(-4.15%)
CRM 220.78 -20.57,(-8.52%)
BOX 16.91 -1.63,(-8.79%)

Earnings info Wednesday –
SPLK 205.81 -0.62,(-0.3%)
ESTC 119.9 -0.9,(-0.74%)
SNPS 224.77 -5.25,(-2.28%)
OKTA 230.04 -6.95,(-2.93%)
ZS 146.9 -4.78,(-3.15%)
FIVE 156.1 -6.02,(-3.71%)
CRWD 141.88 -5.62,(-3.81%)
SNOW 292.69 -12.95,(-4.24%)

Earnings info Thursday –
BBW 4.11 +0.26,(+6.75%)
DOCU 217.57 +1.86,(+0.86%)
ULTA 281.74 +2.21,(+0.79%)
MIK 10.28 +0.065,(+0.64%)
ZUO 11.58 +0.01,(+0.09%)
DLTH 13.99 -0.02,(-0.14%)
CBRL 141.66 -0.44,(-0.31%)
DG 217.54 -2.3,(-1.05%)
CLDR 11.2 -0.13,(-1.15%)
SWBI 15.465 -0.255,(-1.62%)

Earnings info Friday –
BIG 52.45 -2.63,(-4.78%)

Commodities/Futures -

Top 5 Highest Commodity % Changes –
1. Steel,(SRR) 554.5 +68.24 (12.31%)
2. Coffee,(KC) 119.28 +3.63 (3.04%)
3. Platinum,(PL) 1018.0 +14.6 (1.43%)
4. Crude Oil,(CL) 45.19 +0.64 (1.42%)
5. Palladium,(PA) 2429.7 +23.8 (0.98%)

Top 5 Lowest Commodity % Changes –
1. Orange Juice,(OJ) 126.0 -2.75 (-2.18%)
2. Cocoa,(CC) 2691.0 -48.0 (-1.78%)
3. Nickel,(NICKEL) 15982.5 -247.5 (-1.55%)
4. Wheat,(W) 577.25 -7.75 (-1.34%)
5. Corn,(C) 420.75 -5.25 (-1.25%)

Spac Corner -

*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.36%)
Top 5 Highest SPAC % Changes –
1. GMHI- 18.22 1.22 (+7.18%); 52 week high :18.59
2. FEAC- 15.68 0.68 (+4.53%); 52 week high :15.68
3. TRNE- 13.36 0.56 (+4.38%); 52 week high :13.57
4. LOAK- 13.3 0.54 (+4.23%); 52 week high :13.5
5. SMMC- 13.9 0.5 (+3.73%); 52 week high :14.49

Top 5 Lowest SPAC % Changes –
1. TDAC- 11.29 -1.2 (-9.61%); 52 week high :12.49
2. LCA- 18.07 -1.31 (-6.76%); 52 week high :20.0
3. HCAC- 11.805 -0.675 (-5.41%); 52 week high :13.0
4. AMCI- 11.49 -0.65 (-5.35%); 52 week high :13.0
5. APXT- 13.4 -0.58 (-4.15%); 52 week high :15.31

Top 5 Spacs by Volume –
1. SBE- 29.5 0.15 (+0.51%); Volume :13,130,999; ADV:7,164,027
2. GMHI- 18.22 1.22 (+7.18%); Volume :9,655,806; ADV:3,322,957
3. APXT- 13.4 -0.58 (-4.15%); Volume :5,851,188; ADV:4,754,331
4. LGVW- 14.64 0.39 (+2.74%); Volume :4,856,965; ADV:4,415,152
5. RMG- 14.88 -0.58 (-3.75%); Volume :4,372,776; ADV:2,794,666

Top 5 Spacs Trading Above ADV –
1. LFAC- 10.585 0.0095 (+0.09%); ADV:17,493: Multiple of ADV:28.84
2. HZAC- 10.2 0.0 (0.0%); ADV:78,465: Multiple of ADV:14.43
3. CRSA- 10.295 0.045 (+0.44%); ADV:36,757: Multiple of ADV:8.92
4. PTAC- 10.75 -0.03 (-0.28%); ADV:145,991: Multiple of ADV:5.56
5. HYAC- 10.08 -0.02 (-0.2%); ADV:386,996: Multiple of ADV:4.24

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. WORK 61 buys totaling 18,739,998 shares. Average Price : 42.85, Cost : $802,734,480
2. FB 7 buys totaling 2,755,693 shares. Average Price : 289.16, Cost : $797,825,306
3. EOG 1 buys totaling 3,838,017 shares. Average Price : 47.5, Cost : $182,305,808
4. VTRS 3 buys totaling 6,450,000 shares. Average Price : 17.12, Cost : $110,167,500
5. DE 1 buys totaling 393,000 shares. Average Price : 259.0, Cost : $101,787,000

Options Fast Facts -

CBOE Put/Call Ratio – 0.37
Highest Multiple Over Daily Average – ADI with 15x the ADV of 3970. There were 60155 calls and 402 puts.
Ticker with Most Contracts –PLTR with 919967 contracts traded today with an AVD of 411669. There were 586596 calls and 333371 puts.
Largest Put / Call Ratio – IEF with a 168 P/C ratio. There were 26983puts and 161 calls.
Largest Call / Put Ratio – RBA with a2540 C/P ratio. There were 10158 calls and 4 puts.
*Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

KGC 7.35 -0.11,(-1.47%)
OVV 13.27 +0.44,(+3.43%)
STM 40.65 -0.75,(-1.81%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Second Momentum Stock Pick

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:SQ 202,-1(-0.49%) Earnings: None
Name :Square Inc – Class A
Industry : Data Processing, Hosting, and Related Services

Option Information –

DEC’18 20 225.0C – 1,300 @ 2.73 were traded at 12:14:00 as a SPLIT Spot Price: 200.41

News –

2020-12-02 13:58:32:Two-Thirds of PayPal Users Aim to Use Bitcoin at Merchant Stores: Study
Nearly a fifth of PayPal users are jumping on to the Bitcoin (BTC) train, a Japanese investment bank report, Mizuho Securities, reported. According to the survey carried out by 380 PayPal users, there is an uptake in BTC purchases on the global payments platform as users take advantage of PayPal’s Bitcoin capabilities. According to the survey, 17% of the respondents said they had already purchased Bitcoin on PayPal, with a further 65% confirming they will use the top crypto in daily purchases of goods and services. After years of belittling Bitcoin adoption and banning its customers from participating in Bitcoin trading, PayPal finally embraced cryptocurrencies. In October this year, BEG reported PayPal would allow customers to buy and sell BTC alongside other top cryptocurrencies such as Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Since Bitcoin’s price has exploded to set new all-time highs as retail customers on the payments platform stack up on the top crypto, Michael Santoli, a CBNC markets commentator, explained BTC’s ripping price growth as a factor of PayPal accumulating more BTC for their customers to purchase. “Bitcoin ripping in part because PayPal and Square are buying loads of it to facilitate customer trading,” he wrote on Twitter.
2020-12-02 10:27:35:Square: The Willy Wonka Of Financial Services (NYSE:SQ)
Square has seemingly been a perpetual growth fintech ecosystem that keeps adding product verticals and expanding their TAM; this is key to understanding why they’ve succeeded.

Sympathy Stocks for : SQ

NTPY, NODC, OCFT, PAGS

Company Description for :SQ

(‘SQ’, ‘Square, Inc. is an American financial services, merchant services aggregator, and mobile payment company based in San Francisco, California. The company markets software and hardware payments products and has expanded into small business services. The company was founded in 2009 by Jack Dorsey and Jim McKelvey and launched its first app and service in 2010. It has been traded as a public company on the New York Stock Exchange since November 2015 with the ticker symbol SQ. The original inspiration for Square occurred to Jack Dorsey in 2009 when Jim McKelvey was unable to complete a $2,000 sale of his glass faucets and fittings because he could not accept credit cards.’)

Second Classic Unusual Options Activity Pick -

Ticker:NIO 47.98,2.62(+5.78%) Earnings: None
Name :NIO Inc – ADR
Industry : Automobile Manufacturing

Option Information –

DEC’18 20 51.0C – 1,038 @ 3.40 were traded at 11:28:00 as a SWEEP Spot Price: 46.08
DEC’18 20 60.0C – 2,000 @ 1.37 were traded at 10:45:00 as a BLOCK Spot Price: 44.88

News –
2020-12-02 14:30:20:NIO Stock Price and Forecast: Extends collapse as Chinese EV makers drop, NKLA buy opportunity eyed – We Beat the Broker
NYSE:NIO drops by 10.23% as the electric vehicle industry continues to get battered. NIO receives a bullish outlook from Goldman Sachs, despite the
2020-12-02 13:58:00:Nio Stock Stages a Big Comeback. No One Knows Why.
All three of the U.S-listed Chinese EV stocks have rallied into positive territory after dropping about 10% in premarket trading.

Sympathy Stocks for : NIO

SHYF, NSANY, NKLA, NIO

This stock was mentioned twice on Nov-02-2020 and Nov-05-2020 at a closing price of 33.32and 42.35.

Company Description for :NIO

(‘NIO’, ”)

What are your thoughts?

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