Unusual Option Activity for Oct-15-2020 COF, FEYE, PINS, SNAP

Daily Synopsis -

  • The S&P 500 -0.12% today while the NASDaq decreased by (-0.71%). The Russell 2000 rose by (+1.03%). The Dow ended in negative territory at (-0.03%)
  • The best performing sector was Energy(+1.21%) while Communication Services(-0.77%)was the worst performer.
  • Investors, however, steadily bought the dip throughout the day that lifted every sector off its low and notably pushed the S&P 500 energy (+1.2%), financials (+0.8%), real estate (+0.5%), and industrials (+0.4%) sectors into positive territory. Note, these sectors are among five S&P 500 sectors still down for the year.
  • The information technology (-0.4%), communication services (-0.7%), and health care (-0.7%) sectors were among the day’s laggards.
  • Earnings-driven gains in Morgan Stanley (MS 51.33, +0.68, +1.3%) and Charles Schwab (SCHW 39.03, +1.91, +5.2%) provided the lift for the financials sector, which had struggled this week amid lackluster/disappointing reactions to previous earnings reports. United Airlines (UAL 34.25, -1.36, -3.8%) reported worse-than-expected results, which kept the airline stocks grounded today.
  • Looking ahead to Friday, investors will receive Retail Sales for September, Industrial Production and Capacity Utilization for September, the preliminary University of Michigan Index of Consumer Sentiment for October, Business Inventories for August, and Net Long-term TIC Flows for August.

Index Summary -

S&P 500 : (-0.12%); NasDaq : (-0.71%);
Russell 2000 :(+1.03%); Dow :(-0.03%);
Vix :26.4 (+2.16%); [+2.31%]; {-2.39%}

Sector Summary -

Three highest sectors for today were –
Energy: (+1.21%); Financials: (+0.77%); Real Estate: (+0.47%)
Three lowest sectors for today were –
Communication Services: (-0.77%); Health Care: (-0.73%); Information Technology: (-0.45%)

Commodities/Futures -

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

Currency –
USD Index :93.366 (+0.51%); [+0.8%]; {+0.11%}
BC :11410 (+1.84%); [-0.09%]; {+9.31%}

Precious Metals –
Gold :1907.3 (+0.29%); [-0.5%]; {+0.62%}
Silver :24.395 (+0.14%); [-3.17%]; {+2.35%}

Farming –
Soybeans :1056.25 (+0.52%); [+2.71%]; {+1.7%}
Corn :396.5 (+1.83%); [+3.79%]; {+4.87%}
Coffee :109.6 (+0.05%); [+0.46%]; {+1.86%}

Industrials –
Crude :41.04 (-0.29%); [+3.78%]; {+0.61%}
Nat Gas :2.636 (+5.5%); [-3.47%]; {+10.36%}
Copper :3.0505 (+1.13%); [+0.78%]; {+4.03%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.17%)
Top 5 Highest SPAC % Changes –
1. FTAC- 11.25 0.65 (+6.13%); 52 week high :12.25
2. FVAC- 14.0 0.55 (+4.09%); 52 week high :16.41
3. NFIN- 12.24 0.28 (+2.34%); 52 week high :12.45
4. SBE- 15.14 0.29 (+1.95%); 52 week high :16.45
5. GXGX- 10.55 0.17 (+1.64%); 52 week high :10.85
Top 5 Lowest SPAC % Changes –
1. IPOB- 23.93 -2.55 (-9.63%); 52 week high :27.0
2. FMCI- 24.06 -2.12 (-8.1%); 52 week high :28.64
3. DPHC- 22.71 -1.84 (-7.5%); 52 week high :31.8
4. FSDC- 10.685 -0.455 (-4.08%); 52 week high :12.6
5. SPAQ- 13.98 -0.34 (-2.37%); 52 week high :21.6
Top 5 Spacs by Volume –

1. SPAQ- 13.98 -0.34 (-2.37%); Volume :7,119,987; ADV:8,031,497
2. IPOB- 23.93 -2.55 (-9.63%); Volume :4,809,186; ADV:5,196,327
3. FSDC- 10.685 -0.455 (-4.08%); Volume :3,125,640; ADV:1,932
4. FMCI- 24.06 -2.12 (-8.1%); Volume :2,889,333; ADV:2,106,517
5. DPHC- 22.71 -1.84 (-7.5%); Volume :2,117,895; ADV:4,548,531
Top 5 Spacs Trading Above ADV –

1. FSDC- 10.685 -0.455 (-4.08%); ADV:1,932: Multiple of ADV:1617.83
2. GRNV- 9.99 0.0 (0.0%); ADV:29,294: Multiple of ADV:13.06
3. ETAC- 9.65 -0.08 (-0.82%); ADV:174,519: Multiple of ADV:11.01
4. ARYB- 9.97 0.0 (0.0%); ADV:62,700: Multiple of ADV:8.71
5. GXGX- 10.55 0.17 (+1.64%); ADV:232,375: Multiple of ADV:6.91

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. PYPL 5 buys totaling 1,487,174 shares. Average Price : 201.12, Cost : $299,052,991
2. GRUB 4 buys totaling 2,277,000 shares. Average Price : 81.44, Cost : $185,451,700
3.IGIB 2 buys totaling 2,448,372 shares. Average Price : 61.03, Cost : $149,420,368
4.CRM 1 buys totaling 500,000 shares. Average Price : 255.09, Cost : $127,546,250
5. DXCM 1 buys totaling 320,600 shares. Average Price : 397.0, Cost : $127,278,200

Options Fast Facts -

CBOE Put/Call Ratio – 0.47
Highest Multiple Over Daily Average – VRTX with 19x the ADV of 1393. There were 17010 calls and 9891 puts.
Ticker with Most Contracts –NIO with 1765081 contracts traded today with an AVD of 431178. There were 1322771 calls and 442310 puts.
Largest Put / Call Ratio – EB with a 63 P/C ratio. There were 15988puts and 252 calls.
Largest Call / Put Ratio – AEO with a82 C/P ratio. There were 20025 calls and 243 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

DKS 63.05 +0.72,(+1.16%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:COF 78.55,-0.11(-0.14%) Earnings: 2020-10-22

Name :Capital One Financial Corp. Special Considerations :

Industry : Finance Sector : Major Banks
Option Information –

Today’s Option Volume: 43106; OptionOI: 183218

Multiple of ADV: 4; ADV: 9781

Total Calls: 41752; Total Puts: 1354

Calls at Ask: 52.6%; Calls at Bid: 40.0%

Puts at Ask: 52.9%; Puts at Bid: 26.3%

C/P Ratio: 31

Noteable Strikes

OCT 16 ’20 78.0C had 12351 VLM and 138 OI.
OCT 16 ’20 79.0C had 24467.0 VLM and 157 OI.

News

No news for today

Potential Sympathy Stocks

CASH, BKU, DFS, C

Impression

The Call Ask Percent is high. I wish the Multiple of ADV was a little higher. Very high C/P Ratio.

Company Description for :COF

Capital One Financial Corp. operates as a financial holding company, which engages in the provision of financial products and services. It operates through the following segments: Credit Card, Consumer Banking, and Commercial Banking. The Credit Card segment offers domestic consumer and small business card lending, and international card lending businesses. The Consumer Banking segment consists of branch-based lending and deposit gathering activities for consumers and small businesses. The Commercial Banking segment comprises of lending, deposit gathering and treasury management services to commercial real estate and commercial and industrial customers. The company was founded by Richard D. Fairbank on July 21, 1994 and is headquartered in McLean, VA.

Second Momentum Stock Pick

Ticker:FEYE 14.285,0.255(+1.82%) Earnings: 2020-10-27

Name :FireEye, Inc. Special Considerations : None

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

Today’s Option Volume: 42924; OptionOI: 172406

Multiple of ADV: 4; ADV: 11767

Total Calls: 41664; Total Puts: 1260

Calls at Ask: 47.5%; Calls at Bid: 32.5%

Puts at Ask: 39.9%; Puts at Bid: 41.1%

C/P Ratio: 33

Noteable Strikes

OCT 16 ’20 14.5C had 2204 VLM and 2387 OI.

OCT 23 ’20 14.5C had 20174 VLM and 2784 OI.

OCT 30 ’20 14.0C had 1090.0 VLM and 1073 OI.

NOV 20 ’20 15.0C had 3221 VLM and 5362 OI.

News

No news for today

Potential Sympathy Stocks

IBM, QLYS, CHKP, PFPT

Impression

The Call Ask Percent looks good. I wish the Multiple of ADV was a little higher. Very high C/P Ratio.

Company Description for :FEYE

FireEye, Inc. operates as a intelligence-led security company. The firm engages in the intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber attacks. It operates through the following geographical segments: United States; EMEA; APAC; and Other. Its solutions include Enterprise Security; Managed Security; Threat Intelligence; and Industry Solutions. The company was founded by Ashar Aziz in February 2004 and is headquartered in Milpitas, CA.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:PINS 43.65,-0.34(-0.77%) Earnings: 2020-10-28

Name :Pinterest, Inc.

Industry : Internet Software/Services

Option Information –

NOV’06 20 47.5C – 500 @ 2.61 were traded at 15:57:00 as a SPLIT Spot Price: 43.56

News –

2020-10-15 15:56:00:Meet the 11 execs who are leading Walmart’s effort to challenge Amazon’s advertising business

Summary List Placement Walmart is ramping up its efforts to compete with Amazon’s advertising business, taking its ad sales in-house and rolling out a self-serve ad platform and API to sell search ads. Business Insider identified 11 people who are key to the retailer’s advertising push. They include Rich Lehrfeld, recently named interim head of advertising arm of Walmart Media Group, filling a role previously held by Stefanie Jay. Others include people in marketing, product, and sales, and many come from agency, brand, and media backgrounds. The stakes are high for Walmart, which wants a piece of the growing e-commerce ad budgets that Amazon dominates. Click here for more BI Prime stories . Walmart has quietly run an advertising business for years. Now it’s ramping up the business to rival Amazon. On October 14, Walmart announced that it was naming marketing exec Rich Lehrfeld to head advertising on an interim basis to fill the role of Stefanie Jay, who was stepping down. Walmart has made a hard push into advertising over the past year.

2020-10-15 14:19:00:Zocdoc defends firing CEO Cyrus Massoumi in 2015, saying the company was burning cash, churning through employees, and losing customers

Summary List Placement Zocdoc and three of its executives and directors have fired back at a lawsuit by co-founder and former CEO Cyrus Massoumi that accused them of forcing him out of the company and running it into the ground, saying he was mismanaging the business and employees wanted him out. In a Tuesday court filing and a Wednesday blog post , the company and three employees that were sued said Massoumi was fired for “repeated unprofessional conduct and extremely poor business judgment.” The company said revenue growth slowed to 1% monthly by October 2015, just before Massoumi was fired, and business and cultural problems were emerging. Business Insider reported in 2015 that former employees described a “frat house” atmosphere at Zocdoc, and the company linked to that story in its blog post on Wednesday. The company had attained unicorn status when it raised money at a $1 billion-plus valuation, which was its most recent funding round. Massoumi has said the company was unable to raise further equity funding and had to borrow money instead.

Sympathy Stocks for : PINS

PIKL, PERI, PINS, PWNX

Company Description for :PINS

(‘PINS’, ‘Pinterest, Inc. engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. The company was founded by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp in October 2008 and is headquartered in San Francisco, CA.’)

Second Classic Unusual Options Activity Pick -

Ticker:SNAP 28.06,0.74(+2.71%) Earnings: 2020-10-20

Name :Snap, Inc.

Industry : Internet Software/Services

Option Information –

OCT’23 20 30.0C – 1,466 @ 0.90 were traded at 12:19:00 as a BLOCK Spot Price: 27.52

News –
2020-10-15 11:36:29:Snapchat’s new music features could create another marketing opportunity for artists and record labels who are looking to move beyond TikTok

Summary List Placement Snapchat users can now add songs to Snaps as the social-media app makes moves to draw in Gen-Z users who have grown accustomed to joining dance challenges and discovering new tracks on TikTok. The new features, which first rolled out in August in Australia and New Zealand , allow Snap’s iOS users to embed a short clip of a song in a photo or video message. Recipients of the Snap can swipe up to view the song, artist name, and album art, and click a link to listen on streaming apps like Apple Music, Spotify, and SoundCloud. Snapchat users aren’t allowed to use Sounds in political and religious speech to protect an artist’s “right to determine when and how their works are used in political and religious statements,” the company said in its user guidelines . The company’s push into music a week after Instagram introduced new trending song features for its short-form video product Reels shows how important music has become for social-media platforms this year. TikTok in particular has become a go-to tool for the music industry as popular songs have taken off organically or through paid song integrations with influencers on the app.

2020-10-15 09:56:34:Snapchat now lets iOS users add song clips from a curated catalog of music to their Snaps and Stories (Todd Spangler/Variety)

Todd Spangler / Variety : Snapchat now lets iOS users add song clips from a curated catalog of music to their Snaps and Stories — Snapchat today is launching a new feature called Sounds — which, taking a page from TikTok, lets app users add song clips to their Snaps and Stories. Currently, though, it’s available only in the app for Apple’s iOS.

Sympathy Stocks for : SNAP

PPPS, PPRG, PPMH, PPJE

Company Description for :SNAP

(‘SNAP’, “Snap, Inc. engages in the operation of its camera platform. Its products include Snapchat, using the camera and editing tools to take and share Snaps, Friends Page, which lets users create and use Stories, Groups, Video and Chat, Discover for searching and surfacing relevant Stories, Snap Map, which shows friends, Stories and Snaps near the user, Memories, for saving personal collections, and Spectacles, wearable sunglasses capable of taking Snaps and interacting directly with the Snapchat application. The company’s primary source of revenue is advertising. Snap was founded by Frank Reginald Brown IV, Evan Thomas Spiegel, and Robert C. Murphy in 2010 and is headquartered in Santa Monica, CA.”)

What are your thoughts?