Friday Unusual Options Activity

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OptionSpotter hunts down unusual options activity, exposing hidden plays for big gains. Sharp, fast, and always ahead—OptionSpotter turns insights into profits.
 

•  20 Dec 2024
 

Keeping an eye on market movements, unusual options activity signals could indicate potential shifts in stock performance. Let’s take a closer look at some of the notable names seeing significant activity today.

Adobe $ADBE has captured the attention of high-net-worth investors, with 38 trades spotted. The mix of bullish and bearish positions suggests a market divided on the stock's future. Notably, 36% of the trades were opened with bullish expectations, while 31% leaned bearish. The substantial volume of puts, totaling over $1.4 million, indicates that some investors may be hedging their positions. For those looking to trade Adobe, it’s crucial to monitor any potential shifts in sentiment as these positions could signal upcoming volatility. If Adobe moves lower in the short term, it could present a buying opportunity for the longer term.

Applied Digital $APLD is another name to watch, with 13 unusual trades reported. The options activity here suggests that a majority of the big-money players are optimistic, with 53% of trades leaning bullish. The calls significantly outnumber the puts, signaling confidence in the stock's upward momentum. The total value of the trades is noteworthy, with over $500,000 in call options alone. This indicates that large investors are positioning themselves for potential growth in Applied Digital, possibly tied to further developments in its technology or market positioning. For traders, this could be a sign of a stock poised for a breakout, but be aware of the potential risks if sentiment shifts.

ARM Holdings $ARM is experiencing a bearish tilt among investors, with several significant puts entering the market. The trades indicate that wealthy players are betting against the stock, signaling that they expect some downside in the near future. With high-volume options activity in the put side, this could be an indication of something significant on the horizon, such as negative news or earnings disappointment. For those holding or looking to enter positions in ARM, it's worth considering a more cautious approach until the direction becomes clearer.

ASML Holdings $ASML is also seeing a large influx of put options, signaling a bearish outlook. The large number of put contracts being executed at a high value suggests that institutional investors are hedging or preparing for potential downside. Given the mixed sentiment in the options market, there’s a possibility that ASML could face short-term pressure. Investors should stay alert to any catalysts, such as earnings reports or geopolitical events, that could impact the stock’s performance in the coming weeks.

Humacyte $HUMA has attracted significant bearish activity, with 77% of trades showing a pessimistic outlook. The volume of puts is considerably higher than calls, and the total value of these positions signals that large investors anticipate a price drop. This could be tied to ongoing concerns about the company’s prospects in the biotech space. For traders, this suggests a cautious approach, especially given the volatility and potential risks in biotech stocks. Short-term traders may look for opportunities to capitalize on any downward movement, while long-term investors might want to reconsider their exposure until clearer signals emerge.

As always, the key is to stay informed, understand the underlying trends, and adjust positions accordingly.

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