Welcome to another Unusual Options Activity post. Why do DD when you can see what stocks people are heavily investing in? I post these daily.
Context -
The S&P 500 gained 1.5% today, while the NASDAQ gained 1.9%, which had a particularly strong performance by mega-cap and semiconductor stocks. All eleven sectors in the S&P 500 ended in positive territory. TSLA shares rose in anticipation of the companies Q2 delivery results this week. WFC said it expects to reduce its dividend in Q3.
Fed Chair Jerome Powell and Treasury Secretary Mnunchin testified before the House Financial Services Committee about the measures taken to support the economy. There wasn’t much of a reaction in the market.
Today’s Option Activity Fast Facts -
Sentiment – CBOE Put/Call Ratio - 0.90 VIX: (31.14, -0.64, -2.1%)
Highest Multiple Over Daily Average - MT with 28x the ADV of 3260. There were 87511 calls and 3049 puts.
Ticker with Most Contracts - WKHS with 222812 contracts traded today with an AVD of 28390. There were 166364 calls and 56448 puts.
Largest Put / Call Ratio - FXB with a 143.9 P/C ratio. There were 4317 puts and 30 calls.
Largest Call / Put Ratio - INVH with a 173.89 C/P ratio. There were 12172 calls and 70 puts.
\Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k*
MOMENTUM UNUSUAL OPTION ACTIVITY -
First Momentum Stock Pick -
Ticker : MT 10.73 0.16 ,( 1.51 %) Earnings : 2020-07-30
Name : ArcelorMittal SA Sector : Non-Energy Minerals
Special Considerations :None Industry : Steel
Option Information -
Today’s Option Volume: 90560 OptionOI: 134832
ADV: 3260 Multiple of ADV: 28
Total Calls: 87511 Total Puts: 3049
Calls at Ask: 56.8 % Calls at Bid: 32.3 % C/P Ratio: 28.7
Puts at Ask: 6.3 % Puts at Bid: 21.4 % P/C Ratio: 0.0
Notable Strikes :
JUL 17 ’20 had 74K VLM with 541 OI.
DarkPool Prints :
None
News :
There isn’t any significant news I can find briefing or IB. The VLE industry report for Steel-producers came out at 12AM today. Unfortunately, the link on IB is a dead end. I did find a report from yesterday that Trump was considering enacting tariffs, specifically mentioning aluminum, but steel could also be included.
My Impression :
Between 9:30 AM and 11:00 AM, there was a lot of UOA on MT. There was not one unusually large trade, mostly ranging between 20-30k with two ~70k outliers. The Calls at the % and C/P ratio is pretty bullish. The multiple of ADV also gives hope the call buying may continue. Perhaps someone knows something about new tariffs about to be passed by the Trump Administration. I’ll be watching the change in OI tomorrow morning to decide if I would like to participate in this trade. If it remains high, I will enter.
Submitted June 30, 2020 at 07:18PM by noentic https://ift.tt/3eRii1Q
