Unusual Option Activity for Dec-14-2020 DBX, VERU, NET, U

Daily Synopsis -

    • The S&P 500 -0.45% today while the NASDaq had a small gain of (+0.67%). The Russell 2000 closed lower by (-0.19%). The Dow ended in negative territory at (-0.61%)
    • The best performing sector was Information Technology(+0.36%) while Energy(-3.5%)was the worst performer.
    • One reported headwind for cyclical stocks was an acknowledgement from NYC Mayor Bill De Blasio that there’s still a possibility of a full shutdown due to the rise in coronavirus cases in the city. Naturally, growth stocks outperformed, including Tesla (TSLA 639.83, +29.84, +4.5%) ahead of its reconstitution into the S&P 500 after Friday’s close.
    • In stimulus news, reports indicated that the $908 billion bipartisan bill was going to be split into two bills: one bill for $748 billion that excludes state and local aid and liability protection and a second bill for $160 billion that includes both contents. House Speaker Pelosi said both sides remained in negotiations.
    • Separately, today was a busy day for M&A news, and none was larger than the $39 billion cash-and-stock deal involving Alexion Pharma (ALXN 156.31, +35.33, +29.2%) and AstraZeneca (AZN 50.03, -4.24, -7.8%). Alexion agreed to be acquired by AstraZeneca for $175.00 per share or a 45% premium to Friday’s closing price for ALXN.
    • Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October.
Index Summary / Sector Summary -

S&P 500 : (-0.45%); NasDaq : (+0.67%);
Russell 2000 :(-0.19%); Dow :(-0.61%);
Vix :23.31 (+5.92%); [+15.92%]; {+18.87%}
Three highest sectors for today were –
Information Technology: (+0.36%); Consumer Discretionary: (+0.15%); Communication Services: (-0.31%)
Three lowest sectors for today were –
Energy: (-3.5%); Industrials: (-1.29%); Materials: (-1.27%)

Anticipated Earnings this Week -

Earnings info Monday –
No Earnings
Earnings info Tuesday –
ASPU 11.62 +0.88,(+8.19%)
NDSN 199.7 +1.91,(+0.97%)
MTSC 58.23 +0.02,(+0.03%)
NAV 44.175 -0.025,(-0.06%)

Earnings info Wednesday –
LEN 74.68 +1.92,(+2.64%)
TTC 91.55 +0.03,(+0.03%)
ABM 39.87 -0.35,(-0.87%)

Earnings info Thursday –
CAMP 10.6 +0.32,(+3.11%)
SCHL 26.37 +0.465,(+1.8%)
JBL 40.31 +0.69,(+1.74%)
WOR 51.28 +0.14,(+0.27%)
GIS 59.35 +0.03,(+0.05%)
RAD 18.46 0.0,(0.0%)
AIR 33.76 -0.26,(-0.76%)
ACN 243.75 -2.08,(-0.85%)
FDX 285.54 -3.93,(-1.36%)
SAFM 138.38 -5.14,(-3.58%)

Earnings info Friday –
APOG 29.73 +0.99,(+3.45%)
DRI 112.48 -0.24,(-0.21%)
WGO 58.01 -0.55,(-0.94%)

Commodities/Futures -

Top 5 Highest Commodity % Changes –
1. Coffee,(KC) 126.13 +7.03 (5.57%)
2. Wheat,(W) 614.5 +18.0 (2.93%)
3. Cocoa,(CC) 2622.0 +55.0 (2.1%)
4. Oats,(O) 338.0 +5.75 (1.7%)
5. Zinc,(MZN) 2834.0 +48.0 (1.69%)

Top 5 Lowest Commodity % Changes –
1. Orange Juice,(OJ) 116.05 -4.85 (-4.18%)
2. Lean Hogs,(LH) 63.225 -1.87 (-2.97%)
3. Sugar,(SB) 14.43 -0.23 (-1.59%)
4. Platinum,(PL) 1015.95 -9.6 (-0.94%)
5. Gold,(GC) 1831.7 -11.9 (-0.65%)

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. BRPA- 14.86 3.11 (+26.47%); 52 week high :11.85
2. IPOB- 29.48 4.05 (+15.93%); 52 week high :29.48
3. LSAC- 16.0 0.79 (+5.19%); 52 week high :16.78
4. OAC- 12.5 0.61 (+5.13%); 52 week high :12.5
5. INAQ- 13.08 0.58 (+4.64%); 52 week high :13.62

Top 5 Lowest SPAC % Changes –
1. TPGY- 21.03 -2.97 (-12.38%); 52 week high :26.0
2. THCB- 14.075 -1.815 (-11.42%); 52 week high :17.2
3. TDAC- 12.23 -1.15 (-8.6%); 52 week high :13.95
4. MFAC- 13.25 -0.85 (-6.03%); 52 week high :15.0
5. SBE- 35.71 -2.2 (-5.8%); 52 week high :43.0

Top 5 Spacs by Volume –
1. BFT- 14.61 0.61 (+4.36%); Volume :35,007,831; ADV:11,753,943
2. TRNE- 24.77 0.0 (0.0%); Volume :8,841,426; ADV:3,261,398
3. IPOC- 11.23 -0.13 (-1.14%); Volume :7,382,743; ADV:5,554,348
4. IPOB- 29.48 4.05 (+15.93%); Volume :6,073,543; ADV:3,418,931
5. GHIV- 11.2 -0.02 (-0.18%); Volume :5,546,745; ADV:2,553,795

Top 5 Spacs Trading Above ADV –
1. BRPA- 14.86 3.11 (+26.47%); ADV:11,332: Multiple of ADV:53.48
2. EQD- 10.13 -0.05 (-0.49%); ADV:67,737: Multiple of ADV:13.87
3. IACA- 10.935 0.175 (+1.63%); ADV:25,702: Multiple of ADV:10.6
4. FSRV- 10.21 -0.04 (-0.39%); ADV:42,982: Multiple of ADV:10.52
5. NHIC- 10.004 0.0 (0.0%); ADV:40,805: Multiple of ADV:9.14

Top 5 Highest Warrant % Changes –
1. BRPAW- 1.92 1.18 (+159.46%); 52 week high :0.74
2. AVAN+- 1.41 0.4 (+39.6%); 52 week high :1.51
3. VMACW- 0.79 0.1902 (+31.71%); 52 week high :0.64
4. MNCLW- 0.85 0.1526 (+21.88%); 52 week high :0.8299
5. BFT+- 3.8 0.68 (+21.8%); 52 week high :3.93

Top 5 Lowest Warrant % Changes –
1. SSPKW- 3.04 -0.46 (-13.14%); 52 week high :3.53
2. TZACW- 0.64 -0.095 (-12.93%); 52 week high :0.98
3. THCBW- 2.905 -0.405 (-12.24%); 52 week high :3.31
4. GIK+- 2.59 -0.32 (-11.0%); 52 week high :3.19
5. ROCHW- 2.54 -0.2899 (-10.24%); 52 week high :2.99

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. AAPL 10 buys totaling 6,067,204 shares. Average Price : 122.39, Cost : $741,924,027
2. ADBE 1 buys totaling 459,000 shares. Average Price : 483.6, Cost : $221,972,400
3. AZN 13 buys totaling 4,354,797 shares. Average Price : 50.93, Cost : $221,797,110
4. NVDA 1 buys totaling 325,417 shares. Average Price : 523.13, Cost : $170,235,395
5. SPLG 2 buys totaling 3,856,715 shares. Average Price : 43.24, Cost : $166,912,422

Options Fast Facts -

CBOE Put/Call Ratio – 0.50
Highest Multiple Over Daily Average – ALXN with 21x the ADV of 2262. There were 35273 calls and 11819 puts.
Ticker with Most Contracts –DIS with 439893 contracts traded today with an AVD of 184608. There were 317099 calls and 122794 puts.
Largest Put / Call Ratio – PBF with a 14 P/C ratio. There were 20329puts and 1443 calls.
Largest Call / Put Ratio – CNX with a64 C/P ratio. There were 12807 calls and 199 puts.
*Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

SLM 11.965 -0.085,(-0.7%)
ALXN 156.425 +35.445,(+29.3%)
FSLY 94.25 -1.44,(-1.5%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:DBX 23.33,0.84(+3.74%) Earnings: None
Name :Dropbox Inc – Class A Special Considerations :
Industry : Information Sector : Data Processing, Hosting, and Related Services
Option Information –
Today’s Option Volume: 171892; OptionOI: 359968
Multiple of ADV: 6; ADV: 30529
Total Calls: 144637; Total Puts: 27255
Calls at Ask: 45.1%; Calls at Bid: 41.7%
Puts at Ask: 37.1%; Puts at Bid: 47.9%
C/P Ratio: 5
Noteable Strikes

DEC 18 ’20 22.0C had 12958 VLM and 2703 OI.
DEC 18 ’20 23.0C had 2828 VLM and 808 OI.
DEC 24 ’20 23.5C had 1087.0 VLM and 78 OI.
DEC 31 ’20 22.5C had 2594.0 VLM and 307 OI.

News

2020-12-14 14:45:00:Dropbox Breaks Out on the Charts Amid M&A Speculation
Dropbox shares have been red hot as M&A aspirations heat up. Can this stock can continue its breakout from here?
2020-12-14 11:47:22:Dropbox May be Next Big Tech Takeover Target
https://www.investing.com/news/stock-market-news/dropbox-may-be-next-big-tech-takeover-target-2368383

Potential Sympathy Stocks

PPPS, PPRG, PPMH, PPJE

Impression

The Call Ask Percent looks good. The Multiple of ADV is okay. I’d like the C/P ratio to be higher.

Company Description for :DBX

Dropbox is a file hosting service operated by the American company Dropbox, Inc., headquartered in San Francisco, California, that offers cloud storage, file synchronization, personal cloud, and client software. Dropbox was founded in 2007 by MIT students Drew Houston and Arash Ferdowsi as a startup company, with initial funding from seed accelerator Y Combinator. Dropbox has been ranked as one of the most valuable startups in the US and the world, with a valuation of over US$10 billion, and it has been described as one of Y Combinator’s most successful investments to date. However, Dropbox has also experienced criticism and generated controversy for issues including security breaches and privacy concerns.

Second Momentum Stock Pick

Ticker:VERU 9.695,3.34(+52.56%) Earnings: None
Name :Veru Inc Special Considerations : 52WkHigh/52WkIVHigh/SSR
Industry : Manufacturing Sector : Pharmaceutical Preparation Manufacturing
Option Information –
Today’s Option Volume: 47500; OptionOI: 20975
Multiple of ADV: 14; ADV: 3304
Total Calls: 36996; Total Puts: 10504
Calls at Ask: 44.0%; Calls at Bid: 41.7%
Puts at Ask: 38.5%; Puts at Bid: 44.9%
C/P Ratio: 4
Noteable Strikes

DEC 18 ’20 7.5C had 11270 VLM and 5535 OI.
JAN 15 ’21 7.5C had 3264 VLM and 3907 OI.

News

No news for today

Potential Sympathy Stocks

OMER, OILS-CA, OFSA3-BR, ODT

Impression

The Call Ask Percent looks good. The Multiple of ADV appears quite bullish. I’d like the C/P ratio to be higher.

Company Description for :VERU

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:NET 81.43,-0.98(-1.19%) Earnings: None
Name :Cloudflare Inc – Class A
Industry : Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing

Option Information –

JAN’15 21 105.0C – 1,300 @ 1.85 were traded at 14:11:00 as a BLOCK Spot Price: 81.96

News –

No news for today

Sympathy Stocks for : NET

PIKL, PERI, PINS, PWNX

This stock was mentioned twice on Dec-10-2020 and Nov-06-2020 at a closing price of 84.05and 64.47.

Company Description for :NET

(‘NET’, ”)

Second Classic Unusual Options Activity Pick -

Ticker:U 146.72,-5.78(-3.79%) Earnings: None
Name :Unity Software Inc
Industry : Software Publishers

Option Information –

JAN’15 21 210.0C – 600 @ 3.95 were traded at 12:12:00 as a SPLIT Spot Price: 145.04

News –
No news for today

Sympathy Stocks for : U

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Company Description for :U

(‘U’, ”)

What are your thoughts?

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