Unusual Option Activity for Oct-12-2020 CLDR, NET, BABA, WKHS

Daily Synopsis -

  • The S&P 500 increased +1.61% today while the NASDaq outperformed by (+3.12%). The Russell 2000 advanced (+0.67%). The Dow ended in positive territory at (+0.89%)
  • The best performing sector was Information Technology(+2.73%) while Materials(-0.17%)was the worst performer.
  • Briefly recapping the latest on stimulus, House Democrats and Senate Republicans rejected the $1.8 trillion offer from the White House for different reasons. Based on the relatively broad-based advance in the market, investors presumably remained in agreement that a deal will eventually be reached, either under the current administration or new leadership in 2021.
  • The financials sector (+1.1%), undeterred by the lack of deal, had a solid outing ahead of earnings reports from several big banks tomorrow morning. Elsewhere, PepsiCo (PEP 142.13, +3.69, +2.7%) was upgraded to Buy from Neutral at Citigroup, and Twilio (TWLO 329.72, +23.48, +7.7%) agreed to acquire Segment for approximately $3.2 billion in stock.
  • With the U.S. Treasury market closed for Columbus Day, commentary mainly focused on the bullish price action in equities. Consequently, it’s reasonable to believe that a fear of missing out on further gains was another factor that fueled the positive momentum in the market. The S&P 500 closed within 1.5% of its all-time high.
  • Investors did not receive any economic data on Monday. Looking ahead, the Consumer Price Index for September, the Treasury Budget for September, and the NFIB Small Business Optimism Index for September are scheduled for Tuesday. Note, the September Treasury Budget is often delayed to allow more time for fiscal year end reconciliation.

Index Summary -

S&P 500 : (+1.61%); NasDaq : (+3.12%);
Russell 2000 :(+0.67%); Dow :(+0.89%);
Vix :25 (+0.28%); [-10.34%]; {-4.57%}

Sector Summary -

Three highest sectors for today were –
Information Technology: (+2.73%); Communication Services: (+2.64%); Consumer Discretionary: (+1.33%)
Three lowest sectors for today were –
Materials: (-0.17%); Energy: (+0.26%); Real Estate: (+0.51%)

Commodities/Futures -

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

Currency –
USD Index :93.065 (+0.01%); [-0.64%]; {-0.73%}
BC :11110 (+4.91%); [+8.72%]; {+9.49%}

Precious Metals –
Gold :1926.2 (+0.07%); [+2.34%]; {+1.01%}
Silver :25.108 (+0.49%); [+5.79%]; {+4.3%}

Farming –
Soybeans :1065.5 (-2.96%); [-1.62%]; {+1.03%}
Corn :395 (-1.58%); [0.0%]; {+1.57%}
Coffee :111.55 (-1.88%); [-0.14%]; {+2.24%}

Industrials –
Crude :40.6 (-2.73%); [-1.15%]; {+1.99%}
Nat Gas :2.741 (+3.21%); [+8.56%]; {+11.95%}
Copper :3.0825 (-0.6%); [+0.97%]; {+7.0%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.29%)
Top 5 Highest SPAC % Changes –
1. TZAC- 11.79 1.01 (+9.37%); 52 week high :13.0
2. IPOB- 23.2 1.96 (+9.23%); 52 week high :24.27
3. DPHC- 25.15 1.95 (+8.4%); 52 week high :31.8
4. KCAC- 15.7 0.95 (+6.44%); 52 week high :25.75
5. DMYT- 12.39 0.49 (+4.12%); 52 week high :14.38
Top 5 Lowest SPAC % Changes –
1. SPAQ- 14.13 -0.47 (-3.22%); 52 week high :21.6
2. LCA- 13.76 -0.34 (-2.41%); 52 week high :19.28
3. HCCH- 11.63 -0.26 (-2.19%); 52 week high :13.4
4. PANA- 10.79 -0.21 (-1.91%); 52 week high :12.0
5. NOVS- 10.32 -0.2 (-1.9%); 52 week high :12.99
Top 5 Spacs by Volume –

1. DPHC- 25.15 1.95 (+8.4%); Volume :5,990,949; ADV:4,440,602
2. IPOB- 23.2 1.96 (+9.23%); Volume :5,551,924; ADV:4,729,571
3. FEAC- 13.95 0.35 (+2.57%); Volume :4,335,277; ADV:3,915,859
4. SPAQ- 14.13 -0.47 (-3.22%); Volume :4,159,244; ADV:8,035,966
5. IPOC- 10.68 0.11 (+1.04%); Volume :3,224,192; ADV:2,813,592
Top 5 Spacs Trading Above ADV –

1. LOAK- 10.42 0.17 (+1.66%); ADV:195,900: Multiple of ADV:6.44
2. LOAC- 10.66 0.0 (0.0%); ADV:298: Multiple of ADV:3.03
3. AMCI- 10.32 -0.02 (-0.19%); ADV:152,735: Multiple of ADV:3.02
4. LGVW- 9.816 0.016 (+0.16%); ADV:112,718: Multiple of ADV:2.56
5. SRAC- 10.625 0.235 (+2.26%); ADV:533,702: Multiple of ADV:2.52

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. FB 2 buys totaling 878,603 shares. Average Price : 274.86, Cost : $242,092,254
2. V 1 buys totaling 976,583 shares. Average Price : 206.64, Cost : $201,801,111
3.BABA 2 buys totaling 495,000 shares. Average Price : 304.75, Cost : $150,851,250
4.VZ 2 buys totaling 2,522,956 shares. Average Price : 59.31, Cost : $149,679,979
5. VLDR 2 buys totaling 7,000,000 shares. Average Price : 18.26, Cost : $127,785,000

Options Fast Facts -

CBOE Put/Call Ratio – 0.44
Highest Multiple Over Daily Average – HUYA with 12x the ADV of 1570. There were 11784 calls and 6762 puts.
Ticker with Most Contracts –AAPL with 3912450 contracts traded today with an AVD of 1944570. There were 2936783 calls and 975667 puts.
Largest Put / Call Ratio – ARMK with a 270 P/C ratio. There were 10277puts and 38 calls.
Largest Call / Put Ratio – BLMN with a56 C/P ratio. There were 13216 calls and 234 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

CGC 19.61 +1.54,(+8.52%)
JMIA 12.26 +1.9,(+18.34%)
MSI 168.33 +1.55,(+0.93%)
DKNG 50.645 +1.825,(+3.74%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:CLDR 11.87,0.44(+3.85%) Earnings: 2020-12-03

Name :Cloudera, Inc. Special Considerations :

Industry : Technology Services Sector : Packaged Software
Option Information –

Today’s Option Volume: 110376; OptionOI: 300079

Multiple of ADV: 9; ADV: 12302

Total Calls: 99701; Total Puts: 10675

Calls at Ask: 47.6%; Calls at Bid: 39.9%

Puts at Ask: 29.9%; Puts at Bid: 48.4%

C/P Ratio: 9

Noteable Strikes

OCT 16 ’20 10.0C had 1561 VLM and 2172 OI.

OCT 16 ’20 11.5C had 1325.0 VLM and 2717 OI.

OCT 23 ’20 12.0C had 50327.0 VLM and 635 OI.

OCT 30 ’20 12.0C had 3116.0 VLM and 1272 OI.

News

2020-10-12 16:04:55:Jon Najarian Sees Unusual Options Activity In Cloudera And Li Auto

On CNBC’s “Fast Money Halftime Report,” Jon Najarian said that over 23,000 contracts of the October $12 calls in Cloudera Inc (NYSE: CLDR ) were traded in the … Full story available on Benzinga.com

2020-10-12 08:29:00:Worldwide Hadoop Big Data Analytics Industry to 2025 – Featuring Microsoft, AWS & Cloudera Among Others – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Hadoop Big Data Analytics Market by Component (Solutions and Service), Deployment Mode, Organization Size, Business Function, Vertical (BFSI, Healthcare and Life Sciences, Manufacturing), and Region – Global Forecast to 2025” report has been added to ResearchAndMarkets.com’s offering. The Hadoop big data analytics market is projected to grow from USD 12,797 million in 2020 to USD 23,526 million by 2025, at a CAGR of 13.0% during the forecast period. Various factors

Potential Sympathy Stocks

PPPS, PPRG, PPMH, PPJE

Impression

The Call Ask Percent looks good. The Multiple of ADV is okay. The C/P ratio is decent..

Company Description for :CLDR

Cloudera, Inc. engages in the provision of enterprise-grade, global data management platforms, services and solutions. It offers enterprise data hub, data warehouse, sata science and engineering, operational database, Cloudera DataFlow, Hortonworks Data Platform, and data science workbench. It operates through Subscription, and Services segments. The company was founded by Amr A. Awadallah, Christophe Bisciglia, Michael Olson and Jeffrey Hammerbacher in June 2008 and is headquartered in Palo Alto, CA.

Second Momentum Stock Pick

Ticker:NET 57.01,10.66(+23.0%) Earnings: 2020-11-05

Name :Cloudflare, Inc. Special Considerations : 52WkHigh

Industry : Technology Services Sector : Information Technology Services
Option Information –

Today’s Option Volume: 79120; OptionOI: 181713

Multiple of ADV: 6; ADV: 12764

Total Calls: 64240; Total Puts: 14880

Calls at Ask: 42.0%; Calls at Bid: 30.8%

Puts at Ask: 33.6%; Puts at Bid: 47.6%

C/P Ratio: 4

Noteable Strikes

OCT 16 ’20 50.0C had 10133 VLM and 2031 OI.

OCT 16 ’20 55.0C had 11655 VLM and 292 OI.

NOV 20 ’20 55.0C had 3049 VLM and 1126 OI.

NOV 20 ’20 60.0C had 5480 VLM and 409 OI.

News

2020-10-12 13:56:35:Cloudflare announces Cloudflare One, a comprehensive service for managing corporate networks, meant to replace a patchwork of WAN technologies (Matthew Prince/The Cloudflare Blog)

Matthew Prince / The Cloudflare Blog : Cloudflare announces Cloudflare One, a comprehensive service for managing corporate networks, meant to replace a patchwork of WAN technologies — Loading… Today we’re announcing Cloudflare One™. It is the culmination of engineering and technical development guided by conversations …

2020-10-12 10:50:00:Thinking about trading options or stock in Ford Motor, Alibaba, Cloudflare, WEX Inc, or American Airlines?

NEW YORK, Oct. 12, 2020 /PRNewswire/ — InvestorsObserver issues critical PriceWatch Alerts for F, BABA, NET, WEX, and AAL. Click a link below then choose between in-depth options trade idea report or a stock score report. Options Report – Ideal trade ideas on up to seven different…

Potential Sympathy Stocks

PIKL, PERI, PINS, PWNX

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 :NET

Cloudflare, Inc. engages in the provision of cloud-based services to secure websites. It offers various products for performance and reliability, video streaming and delivery, advanced security, insights, cloudflare for developers, domain registration and cloudflare marketplace. The company was founded by Matthew Prince, Michelle Zatlyn and Lee Holloway in 2009 and is headquartered in San Francisco, CA.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:BABA 306.34,6.6(+2.2%) Earnings: 2020-10-30

Name :Alibaba Group Holding Ltd.

Industry : Internet Retail

Option Information –

NOV’13 20 340.0C – 420 @ 4.80 were traded at 11:21:00 as a SPLIT Spot Price: 307.12

News –

2020-10-12 15:54:02:’Fast Money Halftime Report’ Picks For October 12

On CNBC’s “Fast Money Halftime Report,” Kevin O’Leary said Alibaba Group Holding Ltd – ADR (NYSE: BABA ) is not going … Full story available on Benzinga.com

2020-10-12 15:25:45:Q3 The Busiest Since 2014 For IPOs, Led By Unicorns, SPACs

The third quarter saw 86 companies go public via a traditional IPO. In the third quarter, 165 special purpose acquisition companies also raised funds. Breaking Down IPO Trends: Health care and technology were the two largest sectors in the third quarter for funds raised. Offerings were up 87% in the third quarter compared to the second quarter. The 86 IPOs were more than double the 38 that raised funds in last year’s third quarter. Overall, the third quarter saw a positive-to-negative ratio of 2.5-to-1 for positive vs. negative opens. This was down from the 5-to-1 ratio seen in the second quarter. This marked the largest quarter for money raised since the third quarter of 2014, when Alibaba Group (NYSE: BABA ) raised $25 billion in the largest IPO ever. Top Q3 IPO Performers: The top five performing IPOs on the basis of opening day performance were: Nkarta Inc (NASDAQ: NKTX ), a biotech company, saw shares surge 204%. BigCommerce Holdings Inc (NASDAQ: BIGC ), a software-as-a-service company, saw shares climb 183%.

Sympathy Stocks for :BABA

AMZN, OSTK, EBAY, SOHU

Company Description for :BABA

(‘BABA’, ‘Alibaba Group Holding Ltd. engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through the following business segments: Core Commerce; Cloud Computing; Digital Media and Entertainment; and Innovation Initiatives and Others. The Core Commerce segment comprises of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers elastic computing, database, storage and content delivery network, large scale computing, security, management and application, big data analytics, a machine learning platform, and other services provide for enterprises of different sizes across various industries. The Digital Media and Entertainment segment relates to the Youko Tudou and UC Browser business. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, Tmall Genie, and others. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China.’)

Second Classic Unusual Options Activity Pick -

Ticker:WKHS 26.56,-0.21(-0.78%) Earnings: 2020-11-05

Name :Workhorse Group, Inc.

Industry : Auto Parts: OEM

Option Information –

OCT’16 20 32.0C – 856 @ 1.95 were traded at 09:43:00 as a SWEEP Spot Price: 29.25

OCT’16 20 34.0C – 758 @ 1.87 were traded at 09:35:00 as a SWEEP Spot Price: 29.82

News –
2020-10-12 14:52:58:Workhorse Gets $200 Million To Advance Electric Van Production

Workhorse Group (NASDAQ: WKHS ) is selling $200 million in new debt to build up cash it needs to increase production of its electric delivery vans. It is also converting a more expensive note to new stock. Issuing new debt is a common tactic for Workhorse. Borrowing costs less now because investors are betting Workhorse will win at least part of a $6.3 billion contract to build next-generation delivery vehicles for the U.S. Post Service. Its stock languished in the low single digits, trading as low as $2.11 a share on April 15. Workhorse shares traded at $29.06 at 10:43 a.m. EDT Monday, up 8.52%. Advancing early production The Loveland, Ohio-based company is producing composite-body electric delivery vans at a plant in Union City, Indiana. The new money will allow the addition of a refrigerated van for grocery delivery, Workhorse CEO Duane Hughes said in a press release. “These new vehicles within our portfolio of products, along with the expanding operations of our drone business, will help to further solidify our leadership …

2020-10-12 13:27:36:Workhorse Stock Trades Higher After Receiving $200M In Convertible Note Financing

Workhorse Group Inc. (NASDAQ: WKHS ) looks to provide drone-integrated electric vehicles to the last-mile delivery sector. What Happened: On Monday, the company entered into a note purchase agreement worth $200 million, which will allow it to sell 4% of its Senior Secured Convertible Notes due 2024 to two institutional lenders. The money will be used to increase and accelerate production volume, … Full story available on Benzinga.com

Sympathy Stocks for :WKHS

(‘PCAR’, ‘NAV’, ‘OSK’, ‘OMTK’)

Company Description for :WKHS

(‘WKHS’, ‘Workhorse Group, Inc. engages in designing and build performance battery-electric vehicles and aircraft. It develops cloud-based, real-time telematics performance monitoring systems. The firm operates in two divisions, Automotive and Aviation. The Automotive division operates as a original equipment manufacturer of class 3-6 commercial-grade, medium-duty truck chassis, marketed under the Workhorse brand. The Aviation division offers delivery drones and SureFly multicopter. The company was founded by Stephen S. Burns on February 20, 2007 and is headquartered in Loveland, OH.’)

2 comments

  1. Any chance of you posting more than 5 dark pool prints?

What are your thoughts?