Unusual Option Activity for Oct-27-2020 IQ, MOMO, NIO, TWTR

Daily Synopsis -

  • The S&P 500 -0.34% today while the NASDaq had a small gain of (+0.8%). The Russell 2000 closed lower by (-0.86%). The Dow ended in negative territory at (-0.84%)
  • The best performing sector was Communication Services(+0.64%) while Industrials(-2.19%)was the worst performer.
  • No other sector within the benchmark index closed higher, and the cyclical industrials (-2.2%), financials (-1.9%), energy (-1.4%), and materials (-1.0%) sectors declined at least 1.0%.
  • Caterpillar (CAT 157.91, -5.29, -3.2%) and 3M (MMM 161.04, -5.12, -3.1%) were notable drags on the industrials sector after the companies refrained from providing guidance. Health care companies Pfizer (PFE 37.42, -0.50, -1.3%), Merck (MRK 77.99, -0.85, -1.1%), and Eli Lilly (LLY 131.90, -23.29, -5.6%) issued in-line/upside guidance, but shares still closed lower.
  • Separately, Xilinx (XLNX 124.35, +9.80, +8.6%) agreed to be acquired by Adv. Micro Devices (AMD 78.88, -3.35, -4.1%) in an all-stock transaction valued at $35 billion. Exact Sciences (EXAS 131.12, +24.22, +23.0%) said it will acquire Thrive for up to $2.15 billion in cash and stock.
  • U.S. Treasuries padded recent gains, pushing yields lower across the curve. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield declined two basis points to 0.78%. The U.S. Dollar Index decreased 0.1% to 92.96. WTI crude futures rebounded 2.5%, or $0.97, to $39.55/bbl.

Index Summary -

S&P 500 : (-0.34%); NasDaq : (+0.8%);
Russell 2000 :(-0.86%); Dow :(-0.84%);
Vix :32.46 (+2.74%); [+13.63%]; {+26.33%}

Sector Summary -

Three highest sectors for today were –
Communication Services: (+0.64%); Information Technology: (+0.5%); Consumer Discretionary: (-0.05%)
Three lowest sectors for today were –
Industrials: (-2.19%); Financials: (-1.82%); Energy: (-1.3%)

Commodities/Futures -

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

Currency –
USD Index :93.044 (-0.11%); [-0.02%]; {-0.78%}
BC :13045 (+4.98%); [+4.1%]; {+20.55%}

Precious Metals –
Gold :1905.7 (+0.2%); [+0.45%]; {+0.46%}
Silver :24.42 (+0.37%); [-0.63%]; {+0.58%}

Farming –
Soybeans :1087.75 (-0.51%); [+0.79%]; {+3.07%}
Corn :417.75 (-0.48%); [-0.12%]; {+3.42%}
Coffee :106.65 (+0.28%); [+0.23%]; {-0.28%}

Industrials –
Crude :38.56 (+2.31%); [-2.93%]; {-3.5%}
Nat Gas :3.024 (+0.3%); [+0.86%]; {+9.38%}
Copper :3.0895 (+0.02%); [-1.9%]; {+0.82%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.23%)
Top 5 Highest SPAC % Changes –
1. DMYD- 10.26 0.26 (+2.6%); 52 week high :10.6
2. NOVS- 11.59 0.19 (+1.67%); 52 week high :12.99
3. IPOB- 18.19 0.21 (+1.17%); 52 week high :27.0
4. DGNR- 11.4 0.12 (+1.06%); 52 week high :13.59
5. PTAC- 10.285 0.085 (+0.83%); 52 week high :11.77
Top 5 Lowest SPAC % Changes –
1. DPHC- 18.21 -2.24 (-10.95%); 52 week high :31.8
2. CPAA- 8.97 -0.61 (-6.37%); 52 week high :12.08
3. FVAC- 12.21 -0.59 (-4.61%); 52 week high :16.41
4. KCAC- 12.4 -0.52 (-4.03%); 52 week high :25.75
5. FEAC- 12.02 -0.38 (-3.06%); 52 week high :14.7
Top 5 Spacs by Volume –

1. SPAQ- 10.0 0.0 (0.0%); Volume :7,907,479; ADV:6,502,261
2. DMYD- 10.26 0.26 (+2.6%); Volume :5,270,015; ADV:68,470
3. DPHC- 18.21 -2.24 (-10.95%); Volume :4,942,330; ADV:4,200,649
4. IPOB- 18.19 0.21 (+1.17%); Volume :2,637,247; ADV:5,712,661
5. HCCO- 10.05 0.05 (+0.5%); Volume :2,049,810; ADV:700,449
Top 5 Spacs Trading Above ADV –

1. DMYD- 10.26 0.26 (+2.6%); ADV:68,470: Multiple of ADV:76.97
2. FAII- 9.73 0.03 (+0.31%); ADV:33,982: Multiple of ADV:18.06
3. SFTW- 10.035 0.075 (+0.75%); ADV:104,555: Multiple of ADV:12.52
4. PANA- 10.28 0.02 (+0.19%); ADV:40,292: Multiple of ADV:9.58
5. GIX- 10.09 -0.07 (-0.69%); ADV:63,692: Multiple of ADV:9.2

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. DD 4 buys totaling 3,034,000 shares. Average Price : 58.5, Cost : $177,489,000
2. TSLA 1 buys totaling 264,700 shares. Average Price : 420.28, Cost : $111,248,116
3.AAPL 1 buys totaling 660,000 shares. Average Price : 116.6, Cost : $76,955,010
4.TOT 2 buys totaling 1,828,146 shares. Average Price : 30.75, Cost : $56,215,490
5. NVS 2 buys totaling 653,000 shares. Average Price : 81.38, Cost : $53,141,140

Options Fast Facts -

CBOE Put/Call Ratio – 0.59
Highest Multiple Over Daily Average – HOG with 16x the ADV of 4471. There were 46719 calls and 26655 puts.
Ticker with Most Contracts –AMD with 837314 contracts traded today with an AVD of 349778. There were 609546 calls and 227768 puts.
Largest Put / Call Ratio – FE with a 13 P/C ratio. There were 9530puts and 749 calls.
Largest Call / Put Ratio – TEN with a50 C/P ratio. There were 11530 calls and 229 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

PTON 121.08 +2.98,(+2.52%)
TSLA 424.61 +4.33,(+1.03%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:IQ 23.995,0.895(+3.87%) Earnings: 2020-11-03

Name :iQIYI, Inc. Special Considerations :

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

Today’s Option Volume: 33854; OptionOI: 465286

Multiple of ADV: 3; ADV: 10198

Total Calls: 31824; Total Puts: 2030

Calls at Ask: 55.7%; Calls at Bid: 29.0%

Puts at Ask: 18.3%; Puts at Bid: 68.7%

C/P Ratio: 16

Noteable Strikes

OCT 30 ’20 23.5C had 11179 VLM and 271 OI.
OCT 30 ’20 24.0C had 5930.0 VLM and 1223 OI.
NOV 06 ’20 24.0C had 2301.0 VLM and 1292 OI.
JUN 18 ’21 27.5C had 1008 VLM and 1186 OI.

News

No news for today

Potential Sympathy Stocks

PIKL, PERI, PINS, PWNX

Impression

The Call Ask Percent is high. I wish the Multiple of ADV was a little higher. The Call/Put Ratio appears bullish.

Company Description for :IQ

iQIYI, Inc. engages in the provision of internet video streaming services. It operates a smart television streaming service and an entertainment-based social media platform, iQIYI Paopao. The firm also also distribute video content through third-party platforms. The company was founded by Yu Gong in November 2009 and is headquartered in Haidan District, China.

Second Momentum Stock Pick

Ticker:MOMO 15.865,0.685(+4.51%) Earnings: 2020-12-01

Name :Momo, Inc. Special Considerations : None

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

Today’s Option Volume: 23420; OptionOI: 166529

Multiple of ADV: 4; ADV: 6443

Total Calls: 22508; Total Puts: 912

Calls at Ask: 46.7%; Calls at Bid: 30.3%

Puts at Ask: 11.1%; Puts at Bid: 19.2%

C/P Ratio: 25

Noteable Strikes

OCT 30 ’20 16.0C had 3034 VLM and 1842 OI.

NOV 20 ’20 14.0C had 1188 VLM and 8025 OI.

NOV 20 ’20 16.0C had 1050 VLM and 2682 OI.

JAN 21 ’22 24.26C had 2086 VLM and 1256 OI.

News

No news for today

Potential Sympathy Stocks

VRSN, GLUU, WIX, AKAM

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 :MOMO

Momo, Inc. operates as a mobile-based social networking platform. The platform includes Momo mobile application and related features, functionalities, tools and services that are provided to users, customers and platform partners. It offerings includes live video, value added and mobile game services. The company was founded by Yan Tang, Yong Li, Xiao Liang Lei and Zhiwei Li in July 2011 and is headquartered in Beijing, China.

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:NIO 28.44,2.43(+9.34%) Earnings: 2020-11-10

Name :NIO, Inc. (China)

Industry : Motor Vehicles

Option Information –

NOV’20 20 33.0C – 1,250 @ 1.24 were traded at 15:15:00 as a BLOCK Spot Price: 27.95

NOV’20 20 33.0C – 1,250 @ 1.16 were traded at 14:06:00 as a BLOCK Spot Price: 27.7

News –

2020-10-27 12:25:49:NIO Stock: Nio Is a Chinese Government Put Option

NIO stock has zoomed upward in 2020, thanks to electric car hype and Chinese government support for its luxury image.

2020-10-27 12:16:00:Nio stock price prediction: no obstacles ahead for this bull run to continue

Follow the Nio stock price prediction at Capital.com. Will the Tesla competitor surge further after record sales in China? Read More…

Sympathy Stocks for : NIO

SHYF, NSANY, NKLA, NIO

Company Description for :NIO

(‘NIO’, ‘NIO, Inc. (China) is a holding company, which engages in the design, manufacture, and sale of electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Its products include EP9 supercar and ES8 7-seater SUV. The company provides users with home charging, and power express valet service and other power solutions including access to public charging, access to power mobile charging trucks, and battery swapping. It also offers other value-added services such as service package, battery payment arrangement, and vehicle financing and license plate registration. The company was founded by Li Bin and Qin Li Hong in November 2014 and is headquartered in Jiading, China.’)

Second Classic Unusual Options Activity Pick -

Ticker:TWTR 51.27,2.27(+4.63%) Earnings: 2020-10-29

Name :Twitter, Inc.

Industry : Internet Software/Services

Option Information –

OCT’30 20 55.0C – 1,470 @ 1.49 were traded at 13:36:00 as a BLOCK Spot Price: 51.02

News –
2020-10-27 15:30:01:Twitter employees say Jack Dorsey takes hands-off management to extremes, delegating most major decisions or delaying them, partly so he can pursue his passions (Wall Street Journal)

Wall Street Journal : Twitter employees say Jack Dorsey takes hands-off management to extremes, delegating most major decisions or delaying them, partly so he can pursue his passions — The CEO’s management style, delegating most major decisions while pursuing his personal passions, faces one of its biggest tests

2020-10-27 15:26:09:Online liability reform would make internet worse: Twitter CEO

Sympathy Stocks for : TWTR

GOOGL, FB, SINA, MSFT

Company Description for :TWTR

(‘TWTR’, “Twitter, Inc. is a global platform for public self-expression and conversation in real time. It provides a network that connects users to people, information, ideas, opinions, and news. The company’s services include live commentary, live connections and live conversations. Its application provides social networking services and micro-blogging services through mobile devices and the Internet. The company can also be used as a marketing tool for businesses. It’s products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. Twitter was founded by Jack Dorsey, Christopher Isaac Stone, Noah E. Glass, Jeremy LaTrasse, and Evan Williams on March 21, 2006 and is headquartered in San Francisco, CA.”)

What are your thoughts?

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