Unusual Option Activity for Oct-06-2020 BE, SE, TSM

Daily Synopsis

  • The S&P 500 -1.42% today while the NASDaq decreased by (-1.81%). The Russell 2000 closed lower by (-0.29%). The Dow ended in negative territory at (-1.35%)
  • The best performing sector was Utilities(+0.85%) while Communication Services(-2.1%)was the worst performer.
  • The energy sector, which was up as much as 2.0% amid higher oil prices ($40.67/bbl, +1.38, +3.5%), relinquished its leadership position and declined 1.5%. The influential losses, however, came from the information technology (-1.6%), consumer discretionary (-2.1%), and communication services (-2.0%) sectors due to the daylong underperformance in their mega-cap components.
  • Investors returned to the Treasury market where longer-dated yields had been on the rise on stimulus hopes. The 2-yr yield increased one basis point to 0.15%, while the 10-yr yield declined two basis points to 0.74% after touching 0.79% at its intraday high. The U.S. Dollar Index increased 0.2% to 93.70.
  • Fed Chair Powell made it clear today, if not already, of the need for further fiscal relief. There is still hope among some investors that the president will change his tune, and it’s worth pointing out the S&P 500 remained positive for the week. The benchmark index, however, did close back below its 50-day moving average (3368).
  • NVIDIA (NVDA 549.46, +3.76, +0.7%) was a notable exception today after its price target was raised to $650 from $565 at BMO Capital Markets.
  • Looking ahead, investors will receive the FOMC Minutes from the Sept. 15-16 meeting, Consumer Credit for August, and the weekly MBA Mortgage Applications Index on Wednesday.

Index Summary -

S&P 500 : (-1.42%); NasDaq : (-1.81%);
Russell 2000 :(-0.29%); Dow :(-1.35%);
Vix :27.96 (+5.72%); [+12.52%]; {+3.43%}

Sector Summary -

Three highest sectors for today were –
Utilities: (+0.85%); Consumer Staples: (-0.65%); Real Estate: (-0.85%)
Three lowest sectors for today were –
Communication Services: (-2.1%); Consumer Discretionary: (-1.85%); Information Technology: (-1.55%)

Commodities/Futures -

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

Currency –
USD Index :93.545 (+0.26%); [+0.03%]; {-0.94%}
BC :10815 (-1.99%); [-0.42%]; {-0.06%}

Precious Metals –
Gold :1920.1 (-1.59%); [-0.99%]; {+1.72%}
Silver :24.56 (-4.46%); [-3.01%]; {+1.95%}

Farming –
Soybeans :1021.5 (+2.13%); [+1.93%]; {+4.06%}
Corn :379.5 (+1.38%); [+0.52%]; {+5.34%}
Coffee :107.2 (+0.47%); [+0.61%]; {-5.24%}

Industrials –
Crude :39.22 (+2.58%); [+3.9%]; {-0.05%}
Nat Gas :2.615 (-3.52%); [-0.16%]; {+17.95%}
Copper :2.963 (-0.88%); [+2.57%]; {-1.21%}

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

SPAC ETF : (-0.87%)
Top 5 Highest SPAC % Changes –
1. LSAC- 13.7 0.2 (+1.48%); 52 week high :14.72
2. PANA- 11.04 0.09 (+0.82%); 52 week high :12.0
3. SFTW- 10.2 0.08 (+0.79%); 52 week high :10.36
4. BCTG- 10.17 0.07 (+0.69%); 52 week high :10.88
5. SAMA- 10.2 0.06 (+0.59%); 52 week high :11.09

Top 5 Lowest SPAC % Changes –
1. IPOC- 10.97 -1.71 (-13.49%); 52 week high :13.35
2. IPOB- 16.35 -1.9 (-10.41%); 52 week high :19.47
3. FMCI- 21.145 -2.085 (-8.97%); 52 week high :28.64
4. KCAC- 13.65 -1.3 (-8.7%); 52 week high :25.75
5. DPHC- 21.59 -1.69 (-7.26%); 52 week high :31.8

Top 5 Spacs by Volume –

1. IPOC- 10.97 -1.71 (-13.49%); Volume :27,806,900; ADV:1,228,971
2. SPAQ- 13.9 -0.35 (-2.46%); Volume :7,066,140; ADV:8,469,061
3. SBE- 13.9 -1.06 (-7.09%); Volume :5,046,661; ADV:2,655,828
4. IPOB- 16.35 -1.9 (-10.41%); Volume :4,946,215; ADV:4,189,849
5. CCXX- 10.11 -0.24 (-2.32%); Volume :4,169,203; ADV:2,077,683

Top 5 Spacs Trading Above ADV –

1. ALAC- 10.75 0.0 (0.0%); ADV:582: Multiple of ADV:63.78
2. TDAC- 10.785 -0.035 (-0.32%); ADV:1,775: Multiple of ADV:33.15
3. IPOC- 10.97 -1.71 (-13.49%); ADV:1,228,971: Multiple of ADV:22.63
4. ROCH- 9.9 -0.1 (-1.0%); ADV:14,716: Multiple of ADV:13.52
5. FSRV- 10.1 0.0 (0.0%); ADV:50,211: Multiple of ADV:8.85

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. USHY 6 buys totalling 12,306,104 shares. Average Price : 39.75, Cost : $489,154,177
2. AAPL 4 buys totalling 1,475,687 shares. Average Price : 114.78, Cost : $169,478,152
3.SNY 4 buys totalling 1,735,920 shares. Average Price : 50.07, Cost : $86,937,462
4.MYOK 2 buys totalling 334,294 shares. Average Price : 220.44, Cost : $73,690,144
5. EQNR 4 buys totalling 4,772,415 shares. Average Price : 14.48, Cost : $69,077,366

Options Fast Facts -

CBOE Put/Call Ratio – 0.49
Highest Multiple Over Daily Average – LEVI with 12x the ADV of 3015. There were 26011 calls and 9385 puts.
Ticker with Most Contracts –BA with 586149 contracts traded today with an AVD of 284277. There were 355384 calls and 230765 puts.
Largest Put / Call Ratio – AMX with a 231 P/C ratio. There were 10176puts and 44 calls.
Largest Call / Put Ratio – ESI with a2632 C/P ratio. There were 13161 calls and 5 puts.

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

SRNE 10.635 -0.235,(-2.16%)
ACMR 70.36 -5.56,(-7.32%)
GSX 94.81 +0.1,(+0.11%)

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:BE 19.53,1.83(+10.34%) Earnings: 2020-11-04
Name :Bloom Energy Corp. Special Considerations : 52WkHigh
Industry : Producer Manufacturing Sector : Electrical Products

Option Information –
Today’s Option Volume: 31842; OptionOI: 67963
Multiple of ADV: 5; ADV: 6799
Total Calls: 26052; Total Puts: 5790
Calls at Ask: 48.1%; Calls at Bid: 35.2%
Puts at Ask: 21.0%; Puts at Bid: 29.8%
C/P Ratio: 4

Noteable Strikes

OCT 16 ’20 18.0C had 4121 VLM and 7179 OI.
OCT 16 ’20 20.0C had 9521.0 VLM and 2708 OI.
NOV 20 ’20 20.0C had 1333 VLM and 1403 OI.

News

No news for today

Potential Sympathy Stocks

NJDCY, HYEG, POLA, PWVI

Impression

The Call Ask Percent looks good. I wish the Multiple of ADV was a little higher. I’d like the C/P ratio to be higher.

Company Description for :BE

Bloom Energy Corp. engages in the manufacture and installation of on-site distributed power generators. Its product, Bloom Energy Server, converts standard low-pressure natural gas or biogas into electricity through an electrochemical process without combustion. The company was founded by K. R. Sridhar, John Finn, Jim McElroy, Matthias Gottmann, and Dien Nguyen on January 18, 2001 and is headquartered in San Jose, CA.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:SE 163.44,5.86(+3.72%) Earnings: 2020-11-18
Name :Sea Ltd. (Singapore)
Industry : Internet Software/Services

Option Information –

OCT’30 20 180.0C – 650 @ 4.65 were traded at 10:25:00 as a BLOCK Spot Price: 165.24
OCT’30 20 180.0C – 650 @ 3.95 were traded at 11:43:00 as a BLOCK Spot Price: 162.62

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.’)

Second Classic Unusual Options Activity Pick -

Ticker:TSM 83.12,-1.42(-1.68%) Earnings: 2020-10-15
Name :Taiwan Semiconductor Manufacturing Co., Ltd.
Industry : Semiconductors

Option Information –

OCT’30 20 90.0C – 900 @ 1.42 were traded at 12:07:00 as a BLOCK Spot Price: 83.42

News –
No news for today

Sympathy Stocks for :TSM

(‘TXN’, ‘ADI’, ‘ALTR’, ‘INTC’)

Company Description for :TSM

(‘TSM’, ‘Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture and sale of integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products; information applications; wired and wireless communications systems products; automotive and industrial equipment including consumer electronics such as digital video compact disc player, digital television, game consoles, and digital cameras. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.’)

What are your thoughts?