Unusual Option Activity for Oct-21-2020 HLT, IYR, PYPL, NCLH

Daily Synopsis -

  • The S&P 500 -0.19% today while the NASDaq decreased by (-0.08%). The Russell 2000 closed lower by (-0.86%). The Dow ended in negative territory at (-0.35%)
  • The best performing sector was Communication Services(+1.68%) while Energy(-1.91%)was the worst performer.
  • Obfuscated was the 7% decline in Netflix (NFLX 489.05, -36.37, -6.9%), which missed subscriber estimates. Elsewhere, the energy sector dropped 2.0% amid lower oil prices ($40.03/bbl, -$1.48, -3.6%), and the industrials sector fell 1.0% amid broad-based selling.
  • Separately, Verizon (VZ 56.75, -0.50, -0.9%), Abbott Labs (ABT 105.93, -2.43, -2.2%), and Texas Instruments (TXN 146.13, -4.70, -3.2%) closed lower despite each reporting better-than-expected earnings results and providing upbeat guidance. PayPal (PYPL 213.07, +11.11, +5.5%) pleasantly surprised investors by implementing cryptocurrency services.
  • In the Treasury market, the 10-yr yield increased for the fifth straight session, closing two basis point higher at 0.82% on growing expectations for inflation resulting from another stimulus package. The 2-yr yield was unchanged at 0.15%. The U.S. Dollar Index fell 0.5% to 92.64.
  • Wednesday’s economic data was limited to the weekly MBA Mortgage Applications Index, which decreased 0.6% following a 0.7% decline in the prior week. Looking ahead, investors will receive the weekly Initial and Continuing Claims report, Existing Home Sales for September, and the Conference Board’s Leading Economic Index for September on Thursday.

Index Summary -

S&P 500 : (-0.19%); NasDaq : (-0.08%);
Russell 2000 :(-0.86%); Dow :(-0.35%);
Vix :29.35 (-2.39%); [+8.52%]; {+8.69%}

Sector Summary -

Three highest sectors for today were –
Communication Services: (+1.68%); Consumer Staples: (+0.09%); Information Technology: (-0.15%)
Three lowest sectors for today were –
Energy: (-1.91%); Industrials: (-1.01%); Consumer Discretionary: (-0.55%)

Commodities/Futures -

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

Currency –
USD Index :93.051 (-0.46%); [-1.13%]; {-0.51%}
BC :12755 (+2.51%); [+15.1%]; {+12.42%}

Precious Metals –
Gold :1929.5 (-0.04%); [+1.47%]; {+0.32%}
Silver :25.241 (-0.2%); [+3.36%]; {-0.16%}

Farming –
Soybeans :1072 (-0.02%); [+2.07%]; {+3.68%}
Corn :413.75 (+0.06%); [+2.99%]; {+6.43%}
Coffee :104.9 (-1.38%); [-3.54%]; {-5.22%}

Industrials –
Crude :40.03 (+0.02%); [-2.05%]; {+1.55%}
Nat Gas :3.023 (+0.07%); [+9.09%]; {+5.0%}
Copper :3.1985 (-0.16%); [+4.19%]; {+4.33%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.37%)
Top 5 Highest SPAC % Changes –
1. DPHC- 21.31 2.14 (+11.16%); 52 week high :31.8
2. DFHT- 10.67 0.42 (+4.1%); 52 week high :11.11
3. SPAQ- 12.27 0.42 (+3.54%); 52 week high :21.6
4. DMYD- 10.14 0.17 (+1.7%); 52 week high :10.6
5. LSAC- 14.19 0.23 (+1.65%); 52 week high :14.72
Top 5 Lowest SPAC % Changes –
1. KBLM- 8.78 -2.24 (-20.33%); 52 week high :11.5
2. NFIN- 11.7 -1.05 (-8.24%); 52 week high :12.91
3. KCAC- 14.19 -0.91 (-6.03%); 52 week high :25.75
4. FEAC- 12.6 -0.59 (-4.47%); 52 week high :14.7
5. PANA- 10.675 -0.425 (-3.83%); 52 week high :12.52
Top 5 Spacs by Volume –

1. SPAQ- 12.27 0.42 (+3.54%); Volume :8,488,648; ADV:7,611,334
2. DPHC- 21.31 2.14 (+11.16%); Volume :4,514,957; ADV:4,475,920
3. IPOC- 10.22 -0.13 (-1.26%); Volume :3,885,483; ADV:3,246,361
4. FEAC- 12.6 -0.59 (-4.47%); Volume :2,410,342; ADV:2,360,191
5. PSTH- 23.57 -0.31 (-1.3%); Volume :2,257,272; ADV:1,048,861
Top 5 Spacs Trading Above ADV –

1. PANA- 10.675 -0.425 (-3.83%); ADV:7,234: Multiple of ADV:99.94
2. DMYD- 10.14 0.17 (+1.7%); ADV:16,714: Multiple of ADV:21.26
3. KBLM- 8.78 -2.24 (-20.33%); ADV:4,478: Multiple of ADV:11.05
4. ACEV- 9.72 0.0 (0.0%); ADV:33,603: Multiple of ADV:7.55
5. RPLA- 10.09 0.01 (+0.1%); ADV:193,765: Multiple of ADV:6.84

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. TSLA 2 buys totaling 742,000 shares. Average Price : 426.29, Cost : $315,596,573
2. BABA 2 buys totaling 808,802 shares. Average Price : 310.24, Cost : $251,122,003
3.SNAP 26 buys totaling 6,346,000 shares. Average Price : 36.78, Cost : $234,419,084
4.PBA 3 buys totaling 7,500,000 shares. Average Price : 21.6, Cost : $162,000,000
5. HLT 1 buys totaling 1,400,000 shares. Average Price : 88.5, Cost : $123,900,000

Options Fast Facts -

CBOE Put/Call Ratio – 0.50
Highest Multiple Over Daily Average – FEZ with 24x the ADV of 1590. There were 3266 calls and 34152 puts.
Ticker with Most Contracts –SNAP with 1263892 contracts traded today with an AVD of 145521. There were 787896 calls and 475996 puts.
Largest Put / Call Ratio – MTDR with a 351 P/C ratio. There were 35803puts and 102 calls.
Largest Call / Put Ratio – FIT with a72 C/P ratio. There were 57270 calls and 798 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

FLEX 14.225 -0.265,(-1.83%)
SKY 26.24 -0.98,(-3.6%)
AMD 79.205 -2.355,(-2.89%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:HLT 88.97,-0.6(-0.67%) Earnings: 2020-11-04

Name :Hilton Worldwide Holdings, Inc. Special Considerations :

Industry : Consumer Services Sector : Hotels/Resorts/Cruiselines
Option Information –

Today’s Option Volume: 23342; OptionOI: 82209

Multiple of ADV: 5; ADV: 4759

Total Calls: 22652; Total Puts: 690

Calls at Ask: 97.4%; Calls at Bid: 1.0%

Puts at Ask: 79.6%; Puts at Bid: 15.6%

C/P Ratio: 33

Noteable Strikes

APR 16 ’21 80.0C had 20174 VLM and 11 OI.

News

No news for today

Potential Sympathy Stocks

MAR, CHH, H, IHG

Impression

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

Company Description for :HLT

Hilton Worldwide Holdings, Inc. engages in the provision of hospitality businesses. It operates through the following segments: Ownership and Management & Franchise. The Ownership segment includes owned, leased, and joint venture hotels. The Management & Franchise segment manages hotels and timeshare properties, and license its brands to franchisees. The company was founded by Conrad Hilton on March 18, 2010 and is headquartered in McLean, VA.

Second Momentum Stock Pick

Ticker:IYR 80.62,-0.32(-0.4%) Earnings: None

Name :iShares U.S. Real Estate ETF Special Considerations : None

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

Today’s Option Volume: 21814; OptionOI: 228637

Multiple of ADV: 3; ADV: 7113

Total Calls: 20995; Total Puts: 819

Calls at Ask: 55.1%; Calls at Bid: 32.8%

Puts at Ask: 34.5%; Puts at Bid: 41.6%

C/P Ratio: 26

Noteable Strikes

OCT 30 ’20 84.0C had 5022 VLM and 0 OI.

NOV 06 ’20 88.0C had 1036.0 VLM and 1166 OI.

JAN 15 ’21 88.0C had 1293 VLM and 192 OI.

News

No news for today

Potential Sympathy Stocks

None

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 :IYR

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:PYPL 212.93,10.97(+5.43%) Earnings: 2020-11-02

Name :PayPal Holdings, Inc.

Industry : Data Processing Services

Option Information –

NOV’20 20 240.0C – 794 @ 4.74 were traded at 15:36:00 as a SWEEP Spot Price: 215.25

News –

2020-10-21 18:24:06:Bitcoin Rallies Above $13K Less Than 24 Hours After Breaking 2020 Highs – CoinDesk

Bitcoin (BTC) has risen above $13,000 in less than 24 hours after it broke the $12,000 level on the news that PayPal will support cryptocurrencies on its platform.

2020-10-21 18:11:04:Daily Crunch: Quibi is shutting down

The end is in sight for Quibi, PayPal adds cryptocurrency support and Netflix tests a new promotional strategy. This is your Daily Crunch for October 21, 2020. The big story: Quibi is shutting down The much-hyped streaming video app led by Jeffrey Katzenberg and Meg Whitman, which raised nearly $2 billion in funding, is shutting […]

Sympathy Stocks for : PYPL

NTPY, NODC, OCFT, PAGS

Company Description for :PYPL

(‘PYPL’, ‘PayPal Holdings, Inc. engages in the development of technology platform for digital payments. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The firm manages a two-sided proprietary global technology platform that links customers, which consist of both merchants and consumers, to facilitate the processing of payment transactions. It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. The firm also enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom. The company was founded in December 1998 and is headquartered in San Jose, CA.’)

Second Classic Unusual Options Activity Pick -

Ticker:NCLH 16.99,-0.09(-0.53%) Earnings: 2020-11-05

Name :Norwegian Cruise Line Holdings Ltd.

Industry : Hotels/Resorts/Cruiselines

Option Information –

NOV’20 20 18.5C – 1,569 @ 1.23 were traded at 12:22:00 as a SWEEP Spot Price: 17.12

News –
No news for today

Sympathy Stocks for : NCLH

CCL, RCL, CUK, CKH

Company Description for :NCLH

(‘NCLH’, ‘Norwegian Cruise Line Holdings Ltd. engages in cruise business. It provides cruise experiences for travelers with itineraries in North America, Mediterranean, Baltic, Central America, Bermuda and Caribbean. It also offers an entirely inter-island itinerary in Hawaii. Its brands include Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruses. The company was founded in 2010 and is headquartered in Miami, FL.’)

What are your thoughts?

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