Unusual Option Activity for Oct-26-2020 PTON, TSLA

Daily Synopsis -

  • The S&P 500 -1.85% today while the NASDaq decreased by (-1.5%). The Russell 2000 (-2.16%). The Dow ended in negative territory at (-2.24%)
  • All sectors ended in negative territory today. The best performing sector was Utilities(-0.03%) while Energy(-3.59%)was the worst performer.
  • Conversely, longer-dated Treasuries moved higher in a safe-haven bid, which pushed yields lower. The 10-yr yield declined four basis points to 0.80%, while the 2-yr yield was unchanged at 0.16%. The U.S. Dollar Index advanced 0.3% to 93.07. WTI crude futures fell 3.3%, or $1.30, to $38.58/bbl, which weighed on energy stocks.
  • The stimulus impasse was nothing new for investors, but the continued deadlock was disappointing given the macroenvironment appeared to take an unfortunate turn, which could undercut confidence for consumers and businesses without fiscal support. Note, House Speaker Pelosi said she was still optimistic in reaching an agreement before the election.
  • Today’s steep decline sent the S&P 500 below its 50-day moving average (3408) on a closing basis. The negative price action had some market participants bracing for further downside, evident by the 18% spike in the CBOE Volatility Index (32.46, +4.91, +17.8%).
  • Dunkin (DNKN 103.10, +14.31, +16.1%) was a notable exception to the negative trend today after confirming it’s in talks to be taken private by Inspire Brands for possibly $106.50/share. DNKN shares surged 16%.

Index Summary -

S&P 500 : (-1.85%); NasDaq : (-1.5%);
Russell 2000 :(-2.16%); Dow :(-2.24%);
Vix :27.55 (+17.82%); [+11.24%]; {+24.51%}

Sector Summary -

Three highest sectors for today were –
Utilities: (-0.03%); Health Care: (-1.11%); Real Estate: (-1.21%)
Three lowest sectors for today were –
Energy: (-3.59%); Industrials: (-2.5%); Materials: (-2.5%)

Commodities/Futures -

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

Currency –
USD Index :92.765 (+0.32%); [+0.5%]; {-0.85%}
BC :12970 (+0.77%); [+2.47%]; {+12.72%}

Precious Metals –
Gold :1905.2 (-0.09%); [-1.1%]; {+0.01%}
Silver :24.675 (-1.32%); [-3.37%]; {+0.66%}

Farming –
Soybeans :1083.75 (-0.09%); [+1.0%]; {+1.93%}
Corn :419.25 (-0.48%); [+0.85%]; {+3.34%}
Coffee :105.6 (+0.99%); [+2.4%]; {-2.6%}

Industrials –
Crude :39.85 (-3.26%); [-3.7%]; {-5.88%}
Nat Gas :2.971 (+1.92%); [+0.17%]; {+9.12%}
Copper :3.129 (-1.23%); [-3.26%]; {+0.24%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.6%)
Top 5 Highest SPAC % Changes –
1. LSAC- 14.475 0.275 (+1.94%); 52 week high :14.85
2. CFFA- 10.34 0.09 (+0.88%); 52 week high :12.1
3. GLEO- 9.88 0.08 (+0.82%); 52 week high :10.34
4. VMAC- 9.85 0.08 (+0.82%); 52 week high :11.12
5. DFNS- 10.02 0.05 (+0.5%); 52 week high :10.51
Top 5 Lowest SPAC % Changes –
1. SBE- 14.16 -1.45 (-9.29%); 52 week high :17.6
2. IPOB- 17.98 -1.46 (-7.51%); 52 week high :27.0
3. KCAC- 12.92 -0.95 (-6.85%); 52 week high :25.75
4. HCCH- 11.39 -0.6 (-5.0%); 52 week high :13.4
5. DMYT- 11.62 -0.58 (-4.75%); 52 week high :14.38
Top 5 Spacs by Volume –

1. SPAQ- 10.0 -0.32 (-3.1%); Volume :7,642,110; ADV:7,142,198
2. IPOB- 17.98 -1.46 (-7.51%); Volume :4,181,471; ADV:5,618,504
3. IPOC- 10.1 -0.1 (-0.98%); Volume :2,811,142; ADV:3,587,159
4. SBE- 14.16 -1.45 (-9.29%); Volume :2,743,364; ADV:3,728,411
5. FEAC- 12.4 -0.02 (-0.16%); Volume :2,446,422; ADV:2,214,532
Top 5 Spacs Trading Above ADV –

1. CFII- 9.69 0.0 (0.0%); ADV:11,357: Multiple of ADV:37.73
2. THBR- 10.05 -0.12 (-1.18%); ADV:151,956: Multiple of ADV:9.22
3. ROCH- 9.95 0.0 (0.0%); ADV:25,505: Multiple of ADV:7.84
4. THCB- 10.17 -0.02 (-0.2%); ADV:94,718: Multiple of ADV:7.83
5. LCAP- 9.62 0.0 (0.0%); ADV:1,211: Multiple of ADV:6.73

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. PFE 3 buys totaling 3,931,241 shares. Average Price : 37.84, Cost : $148,933,048
2. VMW 1 buys totaling 985,200 shares. Average Price : 145.0, Cost : $142,854,000
3.ABT 1 buys totaling 1,045,083 shares. Average Price : 107.34, Cost : $112,179,209
4.AYX 3 buys totaling 795,000 shares. Average Price : 137.7, Cost : $109,471,500
5. INTC 1 buys totaling 2,118,738 shares. Average Price : 47.8, Cost : $101,275,676

Options Fast Facts -

CBOE Put/Call Ratio – 0.53
Highest Multiple Over Daily Average – FFIV with 17x the ADV of 1222. There were 7451 calls and 12836 puts.
Ticker with Most Contracts –SNAP with 547160 contracts traded today with an AVD of 252802. There were 206135 calls and 341025 puts.
Largest Put / Call Ratio – KWEB with a 7 P/C ratio. There were 21151puts and 2832 calls.
Largest Call / Put Ratio – FEAC with a61 C/P ratio. There were 11360 calls and 185 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

JMIA 18.03 +0.16,(+0.9%)
AMD 82.22 +0.26,(+0.32%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Second Momentum Stock Pick

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:PTON 117.96,-4.57(-3.73%) Earnings: 2020-11-05

Name :Peloton Interactive, Inc.

Industry : Other Consumer Services

Option Information –

NOV’20 20 128.0C – 1,300 @ 7.70 were traded at 11:01:00 as a BLOCK Spot Price: 119.0

News –

No news for today

Sympathy Stocks for : PTON

NLS, LEAT, JOUT, PTON

Company Description for :PTON

(‘PTON’, ‘Peloton Interactive, Inc. operates at-home fitness platform for live and on-demand indoor cycling classes. The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members. It operates through three reportable segments: Connected Fitness Products, Subscription and Other. The Connected Fitness Product segment consists of sales of bike, tread & related accessories. The Subscription segment involves in the monthly subscription and credits from live studio classes. The Other segment consists of boutique and apparel sales. The Peloton Interactive was founded on by John Foley, Graham Stanton, Thomas Cortese, Yony Feng and Hisao Kushi in 2012 and is headquartered in New York, NY.’)

Second Classic Unusual Options Activity Pick -

Ticker:TSLA 420.4,-0.23(-0.06%) Earnings: 2021-02-02

Name :Tesla, Inc.

Industry : Motor Vehicles

Option Information –

NOV’27 20 475.0C – 982 @ 10.40 were traded at 12:42:00 as a BLOCK Spot Price: 415.44

News –
2020-10-26 16:29:30:Workhorse Stock Will Soar 200% When It Wins the USPS Contract

A USPS contract win could cement Workhorse stock as the Tesla of delivery vans, and send WKHS to the moon.

2020-10-26 16:20:33:Tesla will invest up to $12B in capital expenditures over the next two years – Drive Tesla Canada

Tesla’s rapid pace of innovation will not be slowed down due to a lack of infrastructure as the automaker will invest up to$12B over 2 years.

Sympathy Stocks for : TSLA

GM, F, TM, HMC

Company Description for :TSLA

(‘TSLA’, ‘Tesla, Inc. engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The company operates through the following segments: Automotive and Energy Generation and Storage. The Automotive segment includes the design, development, manufacture and sale of electric vehicles. The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and sale of electricity generated by its solar energy systems to customers. It develops energy storage products for use in homes, commercial facilities and utility sites. The company was founded by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA.’)

What are your thoughts?

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