Unusual Option Activity for Dec-03-2020 WBA, STAY, SE, MRVL

Daily Synopsis -

    • The S&P 500 -0.03% today while the NASDaq had a small gain of (+0.08%). The Russell 2000 advanced (+0.56%). The Dow ended in positive territory at (+0.29%)
    • The best performing sector was Energy(+1.05%) while Utilities(-1.04%)was the worst performer.
    • For most of the day, investors were relatively pleased with the slate of macro news and the big gains in Boeing (BA 237.20, +13.35, +6.0%), Tesla (TSLA 593.38, +24.46, +4.3%), and many of the software companies following their earnings reports.
    • Boeing was boosted by news that Ryanair is ordering 75 737 MAX planes, and Tesla was upgraded to Buy from Hold at Goldman Sachs with a Street-high $780 price target. Software companies Snowflake (SNOW 339.89, +47.20, +16.1%), Zscaler (ZS 185.61, +38.82, +26.5%), and CrowdStrike (CRWD 161.19, +19.35, +13.6%) were among the earnings winners.
    • Positive macro news included Senate Majority Leader McConnell observing that a stimulus compromise is “within reach,” weekly initial jobless claims decreasing more than expected to 712,000 (consensus 775,000), and the November ISM Non-Manufacturing Index (55.9%) denoting a sixth straight month of expansionary activity (over 50.0%).
    • We could nitpick that Senate Minority Leader Schumer (D-NY) didn’t believe that Mr. McConnell was in a deal-making mood, jobless claims remained elevated, or that the ISM reading was less than expected, but a bull market tends to look at things positively. As such, despite the Pfizer-induced blip, today was a relatively constructive day.
    • Looking ahead, investors will receive the Employment Situation Report for November, the Trade Balance for October, and Factory Orders for October on Friday.
Index Summary / Sector Summary -

S&P 500 : (-0.03%); NasDaq : (+0.08%);
Russell 2000 :(+0.56%); Dow :(+0.29%);
Vix :21.17 (+1.04%); [+0.66%]; {-7.44%}
Three highest sectors for today were –
Energy: (+1.05%); Real Estate: (+0.74%); Consumer Discretionary: (+0.28%)
Three lowest sectors for today were –
Utilities: (-1.04%); Materials: (-0.69%); Communication Services: (-0.45%)

Anticipated Earnings this Week -

Earnings info Monday –
No Earnings
Earnings info Tuesday –
MOMO 13.825 +0.475,(+3.56%)
HPE 11.615 +0.095,(+0.83%)
VEEV 273.9 +1.5,(+0.55%)
CRM 220.97 +0.19,(+0.09%)
BOX 16.85 -0.06,(-0.36%)
NTAP 58.47 -0.76,(-1.28%)
HOME 17.28 -1.31,(-7.05%)

Earnings info Wednesday –
ZS 185.72 +38.93,(+26.52%)
SNOW 339.89 +47.2,(+16.13%)
CRWD 161.21 +19.37,(+13.66%)
ESTC 135.0 +15.1,(+12.59%)
OKTA 242.27 +12.06,(+5.24%)
FIVE 162.85 +6.78,(+4.34%)
SNPS 234.14 +9.42,(+4.19%)
SPLK 157.96 -47.95,(-23.29%)

Earnings info Thursday –
MIK 12.35 +2.1,(+20.49%)
BBW 4.65 +0.54,(+13.14%)
DOCU 231.09 +13.39,(+6.15%)
CLDR 11.56 +0.36,(+3.21%)
ULTA 289.75 +7.75,(+2.75%)
CBRL 144.86 +3.2,(+2.26%)
ZUO 11.77 +0.19,(+1.64%)
MRVL 45.5 -0.12,(-0.26%)
SIG 29.47 -0.34,(-1.14%)
DG 214.37 -3.17,(-1.46%)

Earnings info Friday –
BIG 52.85 +0.4,(+0.76%)

Commodities/Futures -

Top 5 Highest Commodity % Changes –
1. Coffee,(KC) 119.68 +2.83 (2.36%)
2. Lumber,(LB) 649.0 +13.8 (2.13%)
3. Platinum,(PL) 1038.8 +21.3 (2.05%)
4. Wheat,(W) 588.5 +11.25 (1.91%)
5. Brent Crude,(LCO) 48.25 +0.83 (1.72%)

Top 5 Lowest Commodity % Changes –
1. Natural Gas,(NG) 2.78 -0.1 (-3.6%)
2. Cocoa,(CC) 2638.0 -53.0 (-2.01%)
3. Aluminum,(MALTR) 2014.0 -35.65 (-1.77%)
4. Feeder Cattle,(GF) 139.5 -2.3 (-1.65%)
5. Lean Hogs,(LH) 67.875 -0.88 (-1.29%)

Spac Corner -

*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.91%)
Top 5 Highest SPAC % Changes –
1. SBE- 32.56 3.06 (+10.37%); 52 week high :37.13
2. LCA- 19.81 1.72 (+9.51%); 52 week high :20.0
3. CIIC- 21.45 1.79 (+9.11%); 52 week high :27.17
4. SRAC- 14.66 1.16 (+8.59%); 52 week high :13.5
5. TRNE- 14.47 1.11 (+8.31%); 52 week high :15.18

Top 5 Lowest SPAC % Changes –
1. CMLF- 10.29 -0.3762 (-3.53%); 52 week high :10.67
2. TZAC- 10.73 -0.27 (-2.46%); 52 week high :11.88
3. SOAC- 10.2 -0.13 (-1.26%); 52 week high :10.48
4. IPOE- 10.42 -0.13 (-1.23%); 52 week high :10.6
5. QELL- 10.85 -0.12 (-1.09%); 52 week high :11.31

Top 5 Spacs by Volume –
1. LGVW- 15.5 0.86 (+5.87%); Volume :7,249,073; ADV:4,665,036
2. FEAC- 16.68 1.0 (+6.38%); Volume :5,273,793; ADV:2,300,472
3. SBE- 32.56 3.06 (+10.37%); Volume :5,215,773; ADV:7,698,873
4. APXT- 13.75 0.34 (+2.54%); Volume :5,088,373; ADV:5,048,771
5. TRNE- 14.47 1.11 (+8.31%); Volume :5,061,801; ADV:1,502,036

Top 5 Spacs Trading Above ADV –
1. LFAC- 11.0 0.41 (+3.87%); ADV:43,899: Multiple of ADV:35.62
2. GLEO- 10.1 0.01 (+0.1%); ADV:49,936: Multiple of ADV:21.71
3. APSG- 9.93 -0.03 (-0.3%); ADV:154,768: Multiple of ADV:8.43
4. MNCL- 11.3 0.0 (0.0%); ADV:14,270: Multiple of ADV:8.02
5. CMLF- 10.29 -0.3762 (-3.53%); ADV:13,708: Multiple of ADV:7.91

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. WORK 48 buys totaling 12,681,246 shares. Average Price : 42.84, Cost : $543,046,408
2. UNH 1 buys totaling 1,100,000 shares. Average Price : 348.21, Cost : $383,031,000
3. EOG 4 buys totaling 7,457,218 shares. Average Price : 48.02, Cost : $357,963,751
4. JPM 1 buys totaling 1,636,019 shares. Average Price : 121.87, Cost : $199,381,636
5. EV 6 buys totaling 2,900,000 shares. Average Price : 65.09, Cost : $188,593,020

Options Fast Facts -

CBOE Put/Call Ratio – 0.40
Highest Multiple Over Daily Average – STAY with 38x the ADV of 1218. There were 45986 calls and 41 puts.
Ticker with Most Contracts –AAL with 967341 contracts traded today with an AVD of 316851. There were 735676 calls and 231665 puts.
Largest Put / Call Ratio – MAC with a 10 P/C ratio. There were 78402puts and 7645 calls.
Largest Call / Put Ratio – STAY with a1122 C/P ratio. There were 45986 calls and 41 puts.
*Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

SQ 205.53 +3.53,(+1.75%)
NIO 45.35 -2.63,(-5.48%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:WBA 42.825,2.985(+7.49%) Earnings: None
Name :Walgreens Boots Alliance Inc Special Considerations :
Industry : Retail Trade Sector : Pharmacies and Drug Stores
Option Information –
Today’s Option Volume: 192688; OptionOI: 456618
Multiple of ADV: 6; ADV: 34328
Total Calls: 173796; Total Puts: 18892
Calls at Ask: 43.2%; Calls at Bid: 25.6%
Puts at Ask: 32.8%; Puts at Bid: 35.3%
C/P Ratio: 9
Noteable Strikes

DEC 04 ’20 41.5C had 3511 VLM and 1723 OI.
DEC 04 ’20 42.0C had 2905.0 VLM and 1537 OI.
DEC 11 ’20 43.0C had 4350.0 VLM and 170 OI.
DEC 11 ’20 45.0C had 6328.0 VLM and 761 OI.

News

No news for today

Potential Sympathy Stocks

CVS, PETS, CJJD, RAD

Impression

The Call Ask Percent looks good. The Multiple of ADV is okay. The C/P ratio is decent..

Company Description for :WBA

Walgreens Boots Alliance, Inc. is an American holding company headquartered in Deerfield, Illinois, that owns Walgreens, Boots, and a number of pharmaceutical manufacturing, wholesale, and distribution companies. The company was formed on December 31, 2014, after Walgreens purchased the 55% stake in UK and Switzerland-based Alliance Boots that it did not already own. The total price of the acquisition was $4.9 billion in cash and 144.3 million common shares with fair value of $10.7 billion. Walgreens had previously purchased 45% of the company for $4.0 billion and 83.4 million common shares in August 2012 with an option to purchase the remaining shares within three years. Walgreens became a subsidiary of the newly created company after the transactions were completed. The company is organized into three divisions: Retail Pharmacy USA , Retail Pharmacy International , and Pharmaceutical Wholesale, incorporating Alliance Healthcare. The new holding company began trading on the NASDAQ on December 31, 2014.

Second Momentum Stock Pick

Ticker:STAY 14.37,0.33(+2.35%) Earnings: None
Name :Extended Stay America Inc – Units Special Considerations : None
Industry : Administrative and Support and Waste Management and Remediation Services Sector : Travel Agencies
Option Information –
Today’s Option Volume: 46027; OptionOI: 66729
Multiple of ADV: 38; ADV: 1218
Total Calls: 45986; Total Puts: 41
Calls at Ask: 58.4%; Calls at Bid: 41.1%
Puts at Ask: 30.5%; Puts at Bid: 0.0%
C/P Ratio: 1122
Noteable Strikes

APR 16 ’21 14.0C had 25507 VLM and 379 OI.

News

No news for today

Potential Sympathy Stocks

H, MAR, CHH, EXPE

Impression

The Call Ask Percent is high. The Multiple of ADV appears quite bullish. Very high C/P Ratio.

Company Description for :STAY

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:SE 183.53,-0.35(-0.19%) Earnings: None
Name :Sea Ltd – ADR
Industry : Software Publishers

Option Information –

DEC’31 20 215.0C – 650 @ 4.10 were traded at 09:59:00 as a BLOCK Spot Price: 189.84

News –

2020-12-03 14:00:16:Canada Revenue Agency: How TFSA Investors Can Earn $25,000 in Tax-Free Income in 2021
You can buy undervalued dividend stocks like Enbridge (TSX:ENB)(NYSE:ENB) for your TFSA and benefit from tax-free capital gains. The post Canada Revenue Agency: How TFSA Investors Can Earn $25,000 in Tax-Free Income in 2021 appeared first on The Motley Fool Canada .
2020-12-03 08:00:11:TFSA Stocks: Get $316 a Month Tax-Free and Avoid the CRA
If you’re looking for quality dividend stocks to stash in a TFSA, consider Enbridge Inc (TSX:ENB)(NYSE:ENB). The post TFSA Stocks: Get $316 a Month Tax-Free and Avoid the CRA appeared first on The Motley Fool Canada .

Sympathy Stocks for : SE

WMB, EPD, ENB, SRE

This stock was mentioned twice on Nov-11-2020 and Nov-12-2020 at a closing price of 169.13and 178.77.

Company Description for :SE

(‘SE’, ”)

Second Classic Unusual Options Activity Pick -

Ticker:MRVL 45.5,-0.12(-0.26%) Earnings: 2020-12-03
Name :Marvell Technology Group Ltd
Industry : Semiconductor and Related Device Manufacturing

Option Information –

DEC’18 20 51.0C – 4,000 @ 0.60 were traded at 13:23:00 as a BLOCK Spot Price: 45.78

News –
No news for today

Sympathy Stocks for : MRVL

TXN, INTC, NVDA, STM

This stock was also mentioned on Oct-08-2020 at a closing price of 42.75

Company Description for :MRVL

(‘MRVL’, ‘Marvell Technology Group is a Bermudan-domiciled semiconductor company. Founded in 1995, the company now has more than 6,000 employees and 10,000 patents worldwide and annual revenue of $2.9 billion . Its U.S. headquarters is located in Santa Clara, CA. Marvell was founded in 1995 by Dr. Sehat Sutardja, his wife Weili Dai, and brother Pantas Sutardja. The initial public offering on June 27, 2000 raised $90 million.’)

What are your thoughts?

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