Unusual Option Activity for Oct-09-2020 CGC, JMIA, MSI, DKNG

Daily Synopsis -

  • The S&P 500 eked out a gain of +0.89% today while the NASDaq added (+1.54%). The Russell 2000 advanced (+0.52%). The Dow ended in positive territory at (+0.58%)
  • The best performing sector was Information Technology(+1.53%) while Energy(-1.6%)was the worst performer.
  • Sector leaders today included consumer discretionary (+1.5%) and information technology (+1.5%) amid solid gains in the mega-caps and semiconductor stocks. The Philadelphia Semiconductor Index rose 1.8%. The energy (-1.6%), real estate (-0.3%), and utilities (-0.04%) sectors closed lower.
  • Within the semiconductor space, Xilinx (XLNX 120.94, +14.95, +14.1%) was reported to be in talks to be acquired by AMD (AMD 83.10, -3.41, -3.9%) for $30 billion, NXP Semi (NXPI 141.53, +6.70, +5.0%) raised Q3 revenue guidance above consensus, and Teradyne (TER 86.10, +3.62, +4.4%) was upgraded to Buy from Hold at Stifel.
  • Separately, Gilead Sciences (GILD 63.84, +0.52, +0.8%) said trial data for its remdesivir drug shortened the recovery time of COVID-19 patients by five days and significantly reduced death rates. The news strengthened the market’s optimism surrounding coronavirus treatments and their potential impact on consumer sentiment.
  • Friday’s economic data was limited to wholesale inventories for August, which increased 0.4% (consensus 1.0%) following a revised 0.2% decline in July (from -0.3%). Investors will not receive any notable data on Monday.

Index Summary -

S&P 500 : (+0.89%); NasDaq : (+1.54%);
Russell 2000 :(+0.52%); Dow :(+0.58%);
Vix :26.36 (-5.16%); [-9.52%]; {-4.54%}

Sector Summary -

Three highest sectors for today were –
Information Technology: (+1.53%); Consumer Discretionary: (+1.04%); Health Care: (+0.9%)
Three lowest sectors for today were –
Energy: (-1.6%); Real Estate: (-0.27%); Utilities: (-0.02%)

Commodities/Futures -

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

Currency –
USD Index :93.648 (-0.65%); [-0.53%]; {-0.95%}
BC :10955 (+1.28%); [+2.59%]; {+2.59%}

Precious Metals –
Gold :1895.1 (+2.17%); [+1.24%]; {+2.22%}
Silver :23.876 (+5.96%); [+3.27%]; {+3.77%}

Farming –
Soybeans :1050 (+1.48%); [+4.31%]; {+7.3%}
Corn :387 (+1.94%); [+3.95%]; {+8.16%}
Coffee :110.25 (+0.82%); [+3.68%]; {+1.46%}

Industrials –
Crude :41.19 (-1.63%); [+3.31%]; {+3.13%}
Nat Gas :2.627 (+5.18%); [+5.66%]; {+7.89%}
Copper :3.042 (+1.38%); [+4.01%]; {+3.37%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.48%)
Top 5 Highest SPAC % Changes –
1. IPOB- 21.24 2.46 (+13.1%); 52 week high :22.45
2. DPHC- 23.03 2.46 (+11.96%); 52 week high :31.8
3. FEAC- 13.6 1.11 (+8.89%); 52 week high :14.7
4. SPAQ- 14.6 0.66 (+4.74%); 52 week high :21.6
5. KCAC- 14.75 0.65 (+4.61%); 52 week high :25.75
Top 5 Lowest SPAC % Changes –
1. SRAC- 10.42 -0.16 (-1.51%); 52 week high :10.88
2. RACA- 14.07 -0.18 (-1.26%); 52 week high :21.44
3. LGVW- 9.8 -0.1 (-1.01%); 52 week high :10.16
4. SFTW- 10.05 -0.1 (-0.98%); 52 week high :10.36
5. HCAC- 10.57 -0.1 (-0.94%); 52 week high :13.5
Top 5 Spacs by Volume –

1. IPOC- 10.57 -0.03 (-0.28%); Volume :8,486,995; ADV:2,546,821
2. FEAC- 13.6 1.11 (+8.89%); Volume :8,017,613; ADV:3,671,183
3. IPOB- 21.24 2.46 (+13.1%); Volume :6,401,493; ADV:4,525,045
4. DPHC- 23.03 2.46 (+11.96%); Volume :4,382,944; ADV:4,510,537
5. SPAQ- 14.6 0.66 (+4.74%); Volume :4,207,396; ADV:8,036,816
Top 5 Spacs Trading Above ADV –

1. ALAC- 10.71 0.0 (0.0%); ADV:1,894: Multiple of ADV:9.7
2. GSAH- 10.274 -0.056 (-0.54%); ADV:189,355: Multiple of ADV:7.64
3. LATN- 9.92 0.0 (0.0%); ADV:40,138: Multiple of ADV:6.17
4. YAC- 9.8 -0.04 (-0.41%); ADV:118,096: Multiple of ADV:5.53
5. AMCI- 10.34 0.06 (+0.58%); ADV:130,880: Multiple of ADV:5.05

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. TOT 2 buys totaling 8,000,000 shares. Average Price : 35.22, Cost : $281,760,000
2. CMCSA 4 buys totaling 5,911,445 shares. Average Price : 44.83, Cost : $264,962,488
3.RIO 7 buys totaling 1,855,520 shares. Average Price : 62.48, Cost : $115,953,701
4.SPSM 2 buys totaling 2,510,368 shares. Average Price : 29.77, Cost : $74,739,060
5. AMD 4 buys totaling 857,600 shares. Average Price : 83.3, Cost : $71,429,633

Options Fast Facts -

CBOE Put/Call Ratio – 0.39
Highest Multiple Over Daily Average – PBF with 28x the ADV of 1238. There were 5085 calls and 28981 puts.
Ticker with Most Contracts –GME with 560702 contracts traded today with an AVD of 75849. There were 314204 calls and 246498 puts.
Largest Put / Call Ratio – TRGP with a 125 P/C ratio. There were 28149puts and 225 calls.
Largest Call / Put Ratio – WBT with a5516 C/P ratio. There were 16547 calls and 3 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

MJ 11.57 +0.03,(+0.26%)
MRVL 44.62 +1.87,(+4.37%)
SPCE 21.4 -0.69,(-3.12%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:CGC 18.07,0.44(+2.5%) Earnings: None

Name :Canopy Growth Corp. Special Considerations :

Industry : Process Industries Sector : Agricultural Commodities/Milling
Option Information –

Today’s Option Volume: 95486; OptionOI: 440483

Multiple of ADV: 3; ADV: 34716

Total Calls: 81632; Total Puts: 13854

Calls at Ask: 42.2%; Calls at Bid: 33.2%

Puts at Ask: 19.6%; Puts at Bid: 51.1%

C/P Ratio: 6

Noteable Strikes

OCT 09 ’20 18.0C had 7679 VLM and 1428 OI.

OCT 09 ’20 18.5C had 4946.0 VLM and 606 OI.

OCT 16 ’20 17.0C had 2911 VLM and 4486 OI.

OCT 16 ’20 17.5C had 2871 VLM and 6630 OI.

News

2020-10-09 14:00:47:Why Did These 3 Cannabis Stocks Soar up to 32% This Week?

Find out why top Canadian marijuana stocks such as Canopy Growth (TSX:WEED)(NYSE:CGC) rallied so dramatically this week. The post Why Did These 3 Cannabis Stocks Soar up to 32% This Week? appeared first on The Motley Fool Canada .

2020-10-09 10:41:06:Benzinga Cannabis Hour Recap: The Future Of CBD Beverages

For many cannabis consumers, traditional methods of getting high — joints and edibles — aren’t necessarily their thing. Beverages, however, have a growing appeal. That’s according to our guests on the most recent Benzinga Cannabis Hour (see link below): Ryan Crane: Founder & CEO, Tempo Beverages Tracey Mason: Co-Founder & CEO, House of Saka Warren Bobrow: Co-Founder & CEO, Klaus The timing for this episode is perfect. Just this week , Pabst Blue Ribbon — the 19th Century beer that is now America’s largest brewer — debuted its cannabis-infused sparkling water at certain cannabis shops in California. The drink doesn’t contain beer or alcohol, but rather a few milligrams of THC. And one of the largest deals ever made in the cannabis space was between spirits giant Constellation Brands (NYSE: STZ ), maker of Modelo Especial beer and Svedka vodka, and Canopy Growth (NYSE: CGC ). Constellation owns a 39% equity stake in the cannabis company and has big plans for a beverage rollout . Now, each of these pros featured in this week’s episode work in the CBD beverage niche, so it’s no surprise that they’re touting the trend with the common goal of hawking more products. …

Potential Sympathy Stocks

SMPL, WEED, SANW, TYHT

Impression

The Call Ask Percent looks good. I wish the Multiple of ADV was a little higher. The C/P ratio is decent. MJ stocks have seen increased interest with the expectations that the Biden administration will legalize Marijuana. VP Kamala Harris made a statement saying she would legalize Marijuana. This appears to be preemptive positioning for this issue to get more attention.

Company Description for :CGC

Canopy Growth Corp. engages in the production and sale of medical cannabis. The company offers products including oils and concentrates, soft gel capsules and hemp. It focuses on the treatment of chronic pain, seizures, muscle spasms, nausea, and loss of appetite. The company was founded by Bruce Linton on August 5, 2009 and is headquartered in Smith Falls, Canada.

Second Momentum Stock Pick

Ticker:JMIA 10.36,-0.16(-1.52%) Earnings: 2020-11-17

Name :Jumia Technologies AG Special Considerations : None

Industry : Technology Services Sector : Internet Software/Services
Option Information –

Today’s Option Volume: 87311; OptionOI: 185348

Multiple of ADV: 7; ADV: 12048

Total Calls: 77955; Total Puts: 9356

Calls at Ask: 37.0%; Calls at Bid: 41.5%

Puts at Ask: 28.9%; Puts at Bid: 45.7%

C/P Ratio: 8

Noteable Strikes

OCT 16 ’20 10.0C had 12764 VLM and 9152 OI.

OCT 16 ’20 11.0C had 6879 VLM and 3815 OI.

NOV 20 ’20 10.0C had 3278 VLM and 3420 OI.

NOV 20 ’20 11.0C had 3484 VLM and 2557 OI.

News

No news for today

Potential Sympathy Stocks

PIKL, PERI, PINS, PWNX

Impression

I wish the Call Ask Percent was a little higher. The Multiple of ADV is okay. The C/P ratio is decent. This stock is new to me. I will have to do more research this weekend as to what is actually driving the call buying here.

Company Description for :JMIA

Jumia Technologies AG engages in the provision of logistic services. It operates though e-Commerce platform segment. The e-Commerce platform segment consists of marketplace, which connects sellers with consumers to its logistics service, which enables the shipment and delivery of packages from sellers to consumers, and payment service, which facilitates transactions among participants active on platform in selected markets. The company was by Jeremy Hodara, Sacha Poignonnec, Peter Allerstorfer, Manuel Koser , Tunde Kehinde and Raphael Afaedor founded on June 26, 2012 and is headquartered in Berlin, Germany.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:MSI 166.78,4.01(+2.46%) Earnings: 2020-10-29

Name :Motorola Solutions, Inc.

Industry : Aerospace & Defense

Option Information –

OCT’16 20 180.0C – 2,572 @ 0.95 were traded at 15:38:00 as a BLOCK Spot Price: 166.28

News –

No news for today

Sympathy Stocks for :MSI

QCOM, CAMP, HPQ, HON

Company Description for :MSI

(‘MSI’, ‘Motorola Solutions, Inc. engages in the provision of communication infrastructure, devices, accessories, software and services. It operates through the following segments: Products and Systems Integration. The Products segment offers an extensive portfolio of infrastructure, devices, accessories, and software. The System Integration segment primary costumers are government, public safety and first-responder agencies, municipalities, and commercial and industrial customers who operate private communications networks and video solutions typically managing a mobile workforce. The company was founded on September 25, 1928 and is headquartered in Schaumburg, IL.’)

Second Classic Unusual Options Activity Pick -

Ticker:DKNG 48.82,-2.31(-4.52%) Earnings: 2020-11-12

Name :DraftKings, Inc.

Industry : Internet Software/Services

Option Information –

OCT’23 20 57.5C – 1,009 @ 0.89 were traded at 15:05:00 as a SWEEP Spot Price: 49.19

News –
No news for today

Sympathy Stocks for :DKNG

(‘LTFD’, ‘NWGI’, ‘SGMS’, ‘SVL-JM’)

Company Description for :DKNG

(‘DKNG’, ‘DraftKings, Inc. operates as a digital sports entertainment and gaming company. It provides online and retail sports wagering offerings, online daily fantasy contests and online casino games. The company was founded by Jason D. Robins, Matthew Kalish and Paul Liberman on December 31, 2011 and is headquartered in Boston, MA.’)

What are your thoughts?