Unusual Option Activity for Nov-03-2020 PDD, KRA

Daily Synopsis -

  • The S&P 500 increased +1.77% today while the NASDaq added (+1.73%). The Russell 2000 rose by (+2.84%). The Dow ended in positive territory at (+2.02%)
  • The best performing sector was Industrials(+2.95%) while Energy(-0.57%)was the worst performer.
  • The positive price action also contributed to continued selling in longer-dated Treasuries, which steepened the curve in a trade that benefited the financials sector. The 2-yr yield was unchanged at 0.16%, while the 10-yr yield increased three basis points to 0.88% to close at its highest level since June 8. The U.S. Dollar Index fell 0.7% to 93.51.
  • In the tech space, PayPal (PYPL 179.81, -7.95, -4.2%) and Skyworks (SWKS 138.80, -3.32, -2.3%) were notable laggards despite exceeding earnings expectations. PayPal, however, did issue downside Q4 EPS guidance. Arista Networks (ANET 249.49, +33.37, +15.4%) surged 15% following its upbeat earnings results and guidance.
  • Interestingly, the S&P 500 came within 12 points of its 50-day moving average (3400) shortly before the close. The catalyst that could propel the benchmark index above the key technical level is, of course, the election. As an aside, trading volume was comparable to previous sessions.
  • Looking ahead, investors will receive the ISM Non-Manufacturing Index for October, the ADP Employment Change Report for October, the Trade Balance Report for September, and the weekly MBA Mortgage Applications Index on Wednesday.

Index Summary -

S&P 500 : (+1.77%); NasDaq : (+1.73%);
Russell 2000 :(+2.84%); Dow :(+2.02%);
Vix :37.13 (-4.26%); [+6.6%]; {+24.08%}

Sector Summary -

Three highest sectors for today were –
Industrials: (+2.95%); Financials: (+2.22%); Consumer Discretionary: (+2.2%)
Three lowest sectors for today were –
Energy: (-0.57%); Utilities: (+1.44%); Health Care: (+1.46%)

Commodities/Futures -

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

Currency –
USD Index :94.145 (-0.69%); [-0.51%]; {+0.8%}
BC :13790 (+0.69%); [+2.81%]; {+7.05%}

Precious Metals –
Gold :1892.5 (+0.87%); [+2.33%]; {+0.37%}
Silver :24.033 (+0.9%); [+3.9%]; {-1.53%}

Farming –
Soybeans :1052.25 (+0.97%); [+1.02%]; {-1.96%}
Corn :397.5 (+0.69%); [+0.44%]; {-4.53%}
Coffee :105.35 (+0.66%); [+1.39%]; {+0.43%}

Industrials –
Crude :36.81 (+2.8%); [+4.62%]; {-5.04%}
Nat Gas :3.244 (-5.73%); [-7.36%]; {+2.93%}
Copper :3.077 (+0.68%); [+1.51%]; {-0.88%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.26%)
Top 5 Highest SPAC % Changes –
1. SBE- 14.9 1.19 (+8.68%); 52 week high :17.6
2. KCAC- 13.0 0.99 (+8.24%); 52 week high :25.75
3. IPOB- 16.67 1.12 (+7.2%); 52 week high :27.0
4. FVAC- 11.46 0.38 (+3.43%); 52 week high :16.41
5. LOAK- 11.4 0.35 (+3.17%); 52 week high :11.94
Top 5 Lowest SPAC % Changes –
1. KBLM- 7.83 -1.26 (-13.86%); 52 week high :11.5
2. DMYT- 11.16 -0.2 (-1.76%); 52 week high :14.38
3. HCCO- 9.22 -0.13 (-1.39%); 52 week high :12.08
4. CFFA- 10.615 -0.135 (-1.26%); 52 week high :12.1
5. PTAC- 10.095 -0.105 (-1.03%); 52 week high :11.77
Top 5 Spacs by Volume –

1. IPOB- 16.67 1.12 (+7.2%); Volume :2,703,185; ADV:3,322,207
2. SBE- 14.9 1.19 (+8.68%); Volume :2,461,718; ADV:3,384,309
3. SCPE- 10.07 0.0 (0.0%); Volume :1,950,000; ADV:19,358
4. DMYT- 11.16 -0.2 (-1.76%); Volume :1,705,218; ADV:556,467
5. IPV- 10.05 0.03 (+0.3%); Volume :1,271,569; ADV:375,427
Top 5 Spacs Trading Above ADV –

1. SCPE- 10.07 0.0 (0.0%); ADV:19,358: Multiple of ADV:100.73
2. KBLM- 7.83 -1.26 (-13.86%); ADV:11,186: Multiple of ADV:9.35
3. TZAC- 10.87 0.0 (0.0%); ADV:7,375: Multiple of ADV:7.81
4. LOAC- 10.78 0.0 (0.0%); ADV:9,696: Multiple of ADV:5.45
5. HZAC- 9.79 0.04 (+0.41%); ADV:46,373: Multiple of ADV:5.4

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. IGIB 3 buys totaling 3,285,185 shares. Average Price : 60.53, Cost : $198,852,248
2. MNST 3 buys totaling 1,576,230 shares. Average Price : 78.58, Cost : $123,345,432
3.BABA 1 buys totaling 300,000 shares. Average Price : 290.45, Cost : $87,135,000
4.HUYA 2 buys totaling 3,274,000 shares. Average Price : 22.37, Cost : $73,215,510
5. AZN 4 buys totaling 1,202,400 shares. Average Price : 51.88, Cost : $62,349,690

Options Fast Facts -

CBOE Put/Call Ratio – 0.62
Highest Multiple Over Daily Average – SIL with 15x the ADV of 1517. There were 22204 calls and 804 puts.
Ticker with Most Contracts –HYG with 594432 contracts traded today with an AVD of 230917. There were 84290 calls and 510142 puts.
Largest Put / Call Ratio – KWEB with a 11 P/C ratio. There were 19915puts and 1736 calls.
Largest Call / Put Ratio – VTV with a248 C/P ratio. There were 15122 calls and 61 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

NVDA 520.88 +17.65,(+3.51%)
NIO 35.5 +2.18,(+6.54%)

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:PDD 97.84,6.22(+6.79%) Earnings: 2020-11-12

Name :Pinduoduo, Inc.

Industry : Internet Retail

Option Information –

NOV’20 20 115.0C – 1,177 @ 3.15 were traded at 10:22:00 as a SPLIT Spot Price: 98.88

News –

No news for today

Sympathy Stocks for : PDD

QRTEA, PXHI, PTS-CT, PRTS

Company Description for :PDD

(‘PDD’, ‘Pinduoduo, Inc. operates as a holding company, which engages in the development and management of an e-commerce platform. Its Pinduoduo mobile application offers a selection of merchandise for buyer acquisition and engagement. The company was founded by Hua Lin Cai and Zheng Huang on April 20, 2015 and is headquartered in Shanghai, China.’)

Second Classic Unusual Options Activity Pick -

Ticker:KRA 28.44,0(0%) Earnings: 2021-03-03

Name :Kraton Corp.

Industry : Industrial Specialties

Option Information –

NOV’20 20 30.0C – 1,205 @ 1.60 were traded at 15:04:00 as a BLOCK Spot Price: 27.73

News –
No news for today

Sympathy Stocks for : KRA

WLK, TSE, LNDC, EMN

Company Description for :KRA

(‘KRA’, ‘Kraton Corp. engages in the manufacture and marketing of styrenic block copolymers, specialty polymers, and other products primarily derived from pine wood pulping co-products. It operates through the Polymer and Chemical segment. The Polymer segment includes styrenic block copolymers and other engineered polymers business. The Chemical segment consists of pine-based specialty products business. The company was founded on February 28, 2001 and is headquartered in Houston, TX.’)

What are your thoughts?

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