Unusual Option Activity for Oct-08-2020 MJ, MRVL, SPCE

Daily Synopsis -

  • The S&P 500 eked out a gain of +0.89% today while the NASDaq had a small gain of (+0.56%). The Russell 2000 rose by (+1.14%). The Dow ended in positive territory at (+0.48%)
  • All sectors ended in positive territory today. The best performing sector was Energy(+3.75%) while Health Care(+0.49%)was the worst performer.
  • IBM (IBM 131.49, +7.42, +6.0%) and the semiconductor stocks kept the tech sector afloat. IBM rose 6% after announcing plans to spin off its IT infrastructure unit, so it could focus on its hybrid cloud growth strategy. Taiwan Semiconductor (TSM 87.80, +0.88, +1.0%) sparked buying interest in the chip space after reporting strong revenue growth in September.
  • The Philadelphia Semiconductor Index rose 1.2% and got an added boost from On Semiconductor (ON 26.04, +2.69, +11.5%) after Starboard Value added the stock to its portfolio.
  • In other positive developments, crude prices ($41.18/bbl, +$1.22, +3.1%) rose 3%, Regeneron (REGN 599.88, +8.19, +1.4%) requested emergency use authorization for its COVID-19 antibody therapy, and Boeing (BA 168.00, +3.39, +2.1%) was reported to be in talks with Alaska Airlines (ALK 38.63, +1.61, +4.4%) for a potential 737 Max order.
  • U.S. Treasuries edged higher in a steady advance despite the gains in equities, which meant yields moved lower. The 2-yr yield decline two basis points to 0.13%, and the 10-yr yield declined two basis points to 0.77%. The U.S. Dollar Index finished little changed at 93.59.
  • Looking ahead, investors will receive Wholesale Inventories for August on Friday.

Index Summary -

S&P 500 : (+0.89%); NasDaq : (+0.56%);
Russell 2000 :(+1.14%); Dow :(+0.48%);
Vix :28.06 (-6.06%); [-1.27%]; {-0.08%}

Sector Summary -

Three highest sectors for today were –
Energy: (+3.75%); Utilities: (+1.83%); Real Estate: (+1.68%)
Three lowest sectors for today were –
Health Care: (+0.49%); Information Technology: (+0.52%); Consumer Discretionary: (+0.66%)

Commodities/Futures -

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

Currency –
USD Index :93.678 (-0.09%); [+0.05%]; {-0.35%}
BC :10955 (+0.27%); [+1.57%]; {+1.57%}

Precious Metals –
Gold :1895.1 (+0.22%); [-0.7%]; {+0.26%}
Silver :23.876 (+0.48%); [-2.08%]; {-1.6%}

Farming –
Soybeans :1050 (+0.07%); [+2.86%]; {+5.82%}
Corn :387 (+0.06%); [+2.04%]; {+6.17%}
Coffee :109.6 (+0.73%); [+2.99%]; {+0.78%}

Industrials –
Crude :41.19 (+0.46%); [+5.51%]; {+5.32%}
Nat Gas :2.627 (+0.42%); [+0.88%]; {+3.01%}
Copper :3.042 (0.0%); [+2.6%]; {+1.96%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.25%)
Top 5 Highest SPAC % Changes –
1. FMCI- 24.32 2.16 (+9.75%); 52 week high :28.64
2. SBE- 14.72 1.01 (+7.37%); 52 week high :16.45
3. IPOB- 18.78 1.21 (+6.89%); 52 week high :19.47
4. NFIN- 11.15 0.51 (+4.79%); 52 week high :11.39
5. FEAC- 12.49 0.49 (+4.08%); 52 week high :14.7
Top 5 Lowest SPAC % Changes –
1. DPHC- 20.51 -1.1 (-5.09%); 52 week high :31.8
2. CCXX- 9.84 -0.41 (-4.0%); 52 week high :12.93
3. INSU- 10.76 -0.34 (-3.06%); 52 week high :14.91
4. PTAC- 10.27 -0.21 (-2.0%); 52 week high :11.77
5. HCCH- 11.505 -0.195 (-1.67%); 52 week high :13.4
Top 5 Spacs by Volume –

1. IPOC- 10.6 -0.1 (-0.94%); Volume :5,219,970; ADV:2,388,691
2. SBE- 14.72 1.01 (+7.37%); Volume :4,931,869; ADV:2,853,550
3. CCXX- 9.84 -0.41 (-4.0%); Volume :4,829,874; ADV:2,049,294
4. FTAC- 10.245 -0.005 (-0.05%); Volume :4,188,702; ADV:899,060
5. IPOB- 18.78 1.21 (+6.89%); Volume :3,225,288; ADV:4,421,397
Top 5 Spacs Trading Above ADV –

1. CIIC- 9.99 0.0 (0.0%); ADV:94,187: Multiple of ADV:19.94
2. SMMC- 10.3 0.0 (0.0%); ADV:71,066: Multiple of ADV:8.28
3. THBR- 10.1 -0.06 (-0.59%); ADV:156,484: Multiple of ADV:6.6
4. SRAC- 10.55 0.26 (+2.53%); ADV:407,695: Multiple of ADV:5.9
5. HYAC- 10.09 0.07 (+0.7%); ADV:352,703: Multiple of ADV:5.53

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. TSLA 3 buys totaling 800,500 shares. Average Price : 433.04, Cost : $347,224,677
2. BABA 3 buys totaling 598,000 shares. Average Price : 300.54, Cost : $179,722,206
3.JPM 1 buys totaling 1,702,057 shares. Average Price : 100.48, Cost : $171,022,687
4.CMCSA 1 buys totaling 2,549,061 shares. Average Price : 45.1, Cost : $114,962,651
5. CSCO 1 buys totaling 2,709,634 shares. Average Price : 39.8, Cost : $107,843,433

Options Fast Facts -

CBOE Put/Call Ratio – 0.39
Highest Multiple Over Daily Average – JMIA with 12x the ADV of 7898. There were 85280 calls and 11756 puts.
Ticker with Most Contracts –GME with 381459 contracts traded today with an AVD of 60625. There were 206617 calls and 174842 puts.
Largest Put / Call Ratio – LQD with a 49 P/C ratio. There were 62056puts and 1258 calls.
Largest Call / Put Ratio – AES with a 213 C/P ratio. There were 37142 calls and 174 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

CNP 21.32 +0.67,(+3.25%)
FSLY 115.72 -4.61,(-3.83%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:MJ 11.54,0.59(+5.39%) Earnings: None

Name :ETFMG Alternative Harvest ETF Special Considerations :

Industry : Miscellaneous Sector : Investment Trusts/Mutual Funds
Option Information –

Today’s Option Volume: 23255; OptionOI: 148453

Multiple of ADV: 7; ADV: 3571

Total Calls: 22161; Total Puts: 1094

Calls at Ask: 75.4%; Calls at Bid: 14.1%

Puts at Ask: 4.3%; Puts at Bid: 25.8%

C/P Ratio: 20

Noteable Strikes

OCT 16 ’20 12.0C had 3328 VLM and 850 OI.

NOV 20 ’20 13.0C had 7920.0 VLM and 839 OI.

DEC 18 ’20 13.0C had 1048.0 VLM and 391 OI.

News

No news for today

Potential Sympathy Stocks

No sympathy stocks.

Impression

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

Company Description for :MJ

Second Momentum Stock Pick

Ticker:MRVL 42.755,0.195(+0.46%) Earnings: 2020-12-08

Name :Marvell Technology Group Ltd. Special Considerations : 52WkHigh

Industry : Electronic Technology Sector : Semiconductors
Option Information –

Today’s Option Volume: 116091; OptionOI: 356711

Multiple of ADV: 5; ADV: 23765

Total Calls: 108315; Total Puts: 7776

Calls at Ask: 39.6%; Calls at Bid: 18.0%

Puts at Ask: 47.2%; Puts at Bid: 35.8%

C/P Ratio: 14

Noteable Strikes

OCT 09 ’20 41.0C had 2505 VLM and 5115 OI.

OCT 09 ’20 42.5C had 4603.0 VLM and 4325 OI.

OCT 16 ’20 45.0C had 29859.0 VLM and 2149 OI.

News

No news for today

Potential Sympathy Stocks

TXN, INTC, NVDA, STM

Impression

I wish the Call Ask Percent was a little higher. I wish the Multiple of ADV was a little higher. The Call/Put Ratio appears bullish.

Company Description for :MRVL

Marvell Technology Group Ltd. engages in the design, development, and sale of integrated circuits. The company offers System-on-a-Chip devices, which leverages technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It also develops integrated hardware platforms along with software that incorporates digital computing technologies designed and configured to provide an optimized computing solution. The company was founded by Sehat Sutardja, Weili Dai and Pantas Sutardja in January 1995 and is headquartered in Hamilton, Bermuda.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:SPCE 22.09,0.27(+1.24%) Earnings: 2020-11-05

Name :Virgin Galactic Holdings, Inc.

Industry : Aerospace & Defense

Option Information –

OCT’30 20 26.0C – 1,600 @ 0.98 were traded at 11:14:00 as a BLOCK Spot Price: 22.09

News –

2020-10-08 14:02:20:SPCE Stock: A Bullish Case for Virgin Galactic Despite Volatility

SPCE stock will certainly be volatile, but overall, the bullish case for shares of Virgin Galactic appears to be intact.

2020-10-08 10:30:12:Virgin Galactic Is Weeks Away From Reaching a Huge Milestone | The Motley Fool

Space tourism definitely has a cool factor, but the profitability path is long.

Sympathy Stocks for :SPCE

SPCE, ASTC, AJRD

Company Description for :SPCE

(‘SPCE’, ‘Virgin Galactic Holdings, Inc. engages in the manufacture of advanced air and space vehicles, and provision of spaceflight services for private individuals and researchers. It designs spaceships which can fly anyone to space safely without the need for expertise or exhaustive time consuming training. The company was founded on May 5, 2017 and is headquartered in Las Cruces, NM.’)

Second Classic Unusual Options Activity Pick -

What are your thoughts?