Unusual Option Activity for Oct-29-2020 NIO, QRVO, PDD

Daily Synopsis -

  • The S&P 500 increased +1.02% today while the NASDaq added (+1.69%). The Russell 2000 rose by (+1.19%). The Dow ended in positive territory at (+0.42%)
  • The best performing sector was Energy(+3.07%) while Health Care(-0.82%)was the worst performer.
  • The energy sector (+3.2%) advanced the most, though. The health care sector (-0.7%) was the lone holdout with Abiomed (ABMD 254.61, -28.39, -10.0%) being the weakest component after guiding fiscal Q3 revenue below consensus.
  • Today’s economic data was good for sentiment, even though the initial reaction was muted and the GDP data was considered backward-looking. Q3 GDP increased at a record annualized rate of 33.1% (consensus 30.2%) following a record 31.4% annualized decline in Q2. Weekly initial jobless claims decreased by 40,000 to 751,000 (consensus 763,000).
  • In other corporate news, Netflix (NFLX 501.21, +17.97, +3.7%) increased its prices for U.S. subscribers, which revived a slumbering stock; Visa (V 184.87, +4.00, +2.2%) beat top and bottom-line estimates; and Marvell (MRVL 38.21, -1.32, -3.3%) agreed to acquire Inphi (IPHI 140.60, +29.63, +26.7%) in a $10 billion deal.
  • The positive showing in equities decreased interest in U.S. Treasuries and hedging activity. The CBOE Volatility Index fell 6.7% to 37.57. The 2-yr yield finished flat at 0.15%, while the 10-yr yield rose five basis points to 0.84%. The U.S. Dollar Index increased 0.6% to 93.92, which was one headwind for oil prices ($36.13, -1.32, -3.5%).

Index Summary -

S&P 500 : (+1.02%); NasDaq : (+1.69%);
Russell 2000 :(+1.19%); Dow :(+0.42%);
Vix :40.28 (-6.68%); [+33.72%]; {+37.14%}

Sector Summary -

Three highest sectors for today were –
Energy: (+3.07%); Communication Services: (+2.52%); Materials: (+2.07%)
Three lowest sectors for today were –
Health Care: (-0.82%); Consumer Staples: (-0.03%); Utilities: (+0.27%)

Commodities/Futures -

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

Currency –
USD Index :93.409 (+0.58%); [+0.98%]; {+0.97%}
BC :13175 (+2.47%); [+3.49%]; {+12.78%}

Precious Metals –
Gold :1879.2 (-0.55%); [-1.78%]; {-2.18%}
Silver :23.359 (+0.15%); [-4.02%]; {-6.18%}

Farming –
Soybeans :1054.75 (-0.33%); [-3.36%]; {-1.2%}
Corn :401.5 (-1.12%); [-4.97%]; {-2.87%}
Coffee :105 (-0.57%); [-2.11%]; {-0.48%}

Industrials –
Crude :37.39 (-3.16%); [-6.09%]; {-12.66%}
Nat Gas :3.291 (+0.67%); [+9.56%]; {+13.73%}
Copper :3.064 (-0.05%); [-0.84%]; {-2.58%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.11%)
Top 5 Highest SPAC % Changes –
1. LCA- 12.2 0.58 (+4.99%); 52 week high :19.28
2. KCAC- 12.0 0.41 (+3.54%); 52 week high :25.75
3. SBE- 13.6 0.28 (+2.1%); 52 week high :17.6
4. LSAC- 14.985 0.235 (+1.59%); 52 week high :15.5
5. PSTH- 22.59 0.32 (+1.44%); 52 week high :24.7
Top 5 Lowest SPAC % Changes –
1. DPHC- 18.21 -2.24 (-10.95%); 52 week high :31.8
2. HCCO- 9.02 -1.02 (-10.16%); 52 week high :12.08
3. SPAQ- 8.96 -0.19 (-2.08%); 52 week high :21.6
4. LFAC- 10.31 -0.21 (-2.0%); 52 week high :11.85
5. NOVS- 11.115 -0.215 (-1.9%); 52 week high :12.99
Top 5 Spacs by Volume –

1. DPHC- 18.21 -2.24 (-10.95%); Volume :4,942,330; ADV:4,200,649
2. IPOC- 9.98 -0.01 (-0.1%); Volume :4,218,128; ADV:3,566,497
3. SPAQ- 8.96 -0.19 (-2.08%); Volume :4,132,479; ADV:6,242,325
4. IPOB- 17.11 -0.25 (-1.44%); Volume :2,301,274; ADV:3,456,372
5. SMMC- 11.37 0.12 (+1.07%); Volume :1,829,235; ADV:773,155
Top 5 Spacs Trading Above ADV –

1. LCAP- 9.66 0.0 (0.0%); ADV:2,253: Multiple of ADV:22.33
2. KSMT- 9.61 0.0 (0.0%); ADV:60,789: Multiple of ADV:10.84
3. ARYA- 10.37 0.0 (0.0%); ADV:27,632: Multiple of ADV:10.2
4. PANA- 10.17 -0.08 (-0.78%); ADV:52,879: Multiple of ADV:6.42
5. ETAC- 9.65 0.0 (0.0%); ADV:224,088: Multiple of ADV:5.52

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. TIF 3 buys totaling 640,000 shares. Average Price : 130.77, Cost : $83,691,400
2. GSX 1 buys totaling 1,100,000 shares. Average Price : 70.1, Cost : $77,110,000
3.PINS 3 buys totaling 790,288 shares. Average Price : 65.39, Cost : $51,996,104
4.BSX 5 buys totaling 1,388,600 shares. Average Price : 33.82, Cost : $46,961,860
5. DDOG 1 buys totaling 485,776 shares. Average Price : 96.4, Cost : $46,828,806

Options Fast Facts -

CBOE Put/Call Ratio – 0.65
Highest Multiple Over Daily Average – IGV with 19x the ADV of 1652. There were 30234 calls and 934 puts.
Ticker with Most Contracts –NIO with 1258704 contracts traded today with an AVD of 570735. There were 991886 calls and 266818 puts.
Largest Put / Call Ratio – IWD with a 840 P/C ratio. There were 30231puts and 36 calls.
Largest Call / Put Ratio – AAP with a215 C/P ratio. There were 22764 calls and 106 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

SWKS 145.115 +5.325,(+3.81%)
AAPL 115.01 +3.81,(+3.43%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:NIO 31.99,4.48(+16.29%) Earnings: 2020-11-10

Name :NIO, Inc. (China) Special Considerations : 52WkHigh

Industry : Consumer Durables Sector : Motor Vehicles
Option Information –

Today’s Option Volume: 1258704; OptionOI: 2809207

Multiple of ADV: 2; ADV: 570735

Total Calls: 991886; Total Puts: 266818

Calls at Ask: 41.7%; Calls at Bid: 31.6%

Puts at Ask: 38.3%; Puts at Bid: 40.5%

C/P Ratio: 4

Noteable Strikes

OCT 30 ’20 28.0C had 32072 VLM and 25378 OI.
OCT 30 ’20 29.0C had 50932 VLM and 14692 OI.
NOV 06 ’20 28.0C had 7067 VLM and 8180 OI.
NOV 06 ’20 29.0C had 16249 VLM and 9335 OI.

News

2020-10-29 16:30:00:NIO Has Done Nothing for Two Weeks. Why Did Its Stock Soar Today?

Stock in the Chinese electric vehicle maker jumped 16%. Other EV stocks also rallied along with the broader market.

2020-10-29 15:59:47:FXNEWS24 |Nio’s stock soars on NYSE-leading volume amid broad gains among EV makers | UK Forex Reviews

Nio’s stock soars on NYSE-leading volume amid broad gains among EV makers | UK Stocks, Forex, Commodities, Crypto, Live Market News- Daily Forex News

Potential Sympathy Stocks

SHYF, NSANY, NKLA, NIO

Impression

This stock was also mentioned on Oct-27-2020 at a closing price of 28.44

The Call Ask Percent looks good. I wish the Multiple of ADV was a little higher. I’d like the C/P ratio to be higher.

Company Description for :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 Momentum Stock Pick

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:QRVO 129.52,4.56(+3.65%) Earnings: 2020-11-04

Name :Qorvo, Inc.

Industry : Semiconductors

Option Information –

NOV’20 20 140.0C – 967 @ 4.25 were traded at 14:17:00 as a SPLIT Spot Price: 130.09

News –

No news for today

Sympathy Stocks for : QRVO

AMD, AMKR, MU, CRUS

Company Description for :QRVO

(‘QRVO’, “Qorvo, Inc. engages in the provision of core technologies and radio frequency solutions for mobile, infrastructure, and aerospace or defense applications. It operates through the following reportable segments: Mobile Products and Infrastructure & Defense Products. The Mobile Products segment supplies of RF solutions that perform various functions in the increasingly complex cellular radio front end section of smartphones and other cellular devices. The Infrastructure & Defense Products segment supplier of RF solutions that support diverse global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, rapid internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. The firm’s products include amplifiers, control products, discrete transistors and integrated circuits, filters and duplexers, frequency converters, integrated modules, optical components, oscillators, passives and switches. The company was founded on December 13, 2013 and is headquartered in Greensboro, NC.”)

Second Classic Unusual Options Activity Pick -

Ticker:PDD 94.1,4.11(+4.57%) Earnings: 2020-11-18

Name :Pinduoduo, Inc.

Industry : Internet Retail

Option Information –

NOV’20 20 110.0C – 650 @ 3.65 were traded at 10:46:00 as a BLOCK Spot Price: 96.66

NOV’20 20 110.0C – 650 @ 3.35 were traded at 10:07:00 as a BLOCK Spot Price: 95.66

News –
No news for today

Sympathy Stocks for : PDD

QRTEA, PXHI, PTS-CT, PRTS

This stock was mentioned twice on Oct-14-2020 and Oct-14-2020 at a closing price of 84.66and 82.67.

Company Description for :PDD

(‘PDD’, ‘Pinduoduo, Inc. operates as a holding company, which engages in the development and management of an e-commerce platform. Its Pinduoduo mobile application offers a selection of merchandise for buyer acquisition and engagement. The company was founded by Hua Lin Cai and Zheng Huang on April 20, 2015 and is headquartered in Shanghai, China.’)

What are your thoughts?

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