Unusual Options Activity Signals Big Moves for Tuesday After-Hours

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

•  29 Oct 2024
 

As the markets close today, several key stocks have exhibited unusually high options activity, revealing signals that experienced traders and investors should pay close attention to. Let’s dive into the implications of these substantial trades for potential future price movements across the most active stocks in today’s options market.

Among today notables, Broadcom $AVGO stands out, with a heavy preference for call options among traders, making up 58% of all trades. The sheer volume of these bullish calls, amounting to over $814,841, suggests that large players are anticipating a favorable move in Broadcom’s stock price. This optimism contrasts with the relatively smaller volume of bearish put options, which totaled $73,928. The discrepancy between bullish and bearish sentiment here could indicate strong underlying confidence in Broadcom's short-term trajectory, potentially driven by speculation on upcoming earnings or industry announcements.

Meanwhile, Chevron $CVX has seen an influx of bearish interest, with a staggering 66% of trades coming in as puts. This suggests significant caution around Chevron’s stock in the near future, particularly as energy prices continue to experience volatility. With $839,579 invested in put options, this influx of bearish bets signals potential downward pressure or a correction that large investors might be preparing for, likely driven by broader industry concerns or macroeconomic pressures impacting the oil and gas sector.

Moving on to Devon Energy $DVN, today options activity has largely skewed bearish as well, with 72% of traders opting for puts. This bearish sentiment is further emphasized by the high value of these put trades, totaling $571,117. This substantial volume in bearish trades points to apprehensions regarding Devon’s future performance, possibly connected to recent developments in the energy sector or company-specific factors. While a small portion of trades are bullish, the overwhelming lean towards put options suggests that most large investors are positioning for a potential downturn.

NVIDIA $NVDA has shown a relatively balanced sentiment among options traders, with a slight tilt toward bearishness. Of the 87 trades recorded today, 47% were puts, signaling caution among investors despite the remaining bullish positions. The significant funds invested in both calls and puts, totaling over $3.5 million, indicate a divided outlook on NVIDIA’s future, potentially tied to volatility in the tech sector. Such mixed sentiment often reflects uncertainty, where investors are actively hedging positions in both directions, anticipating high-impact events that could sway the stock sharply either way.

For Hershey $HSY, options data revealed a notable bearish inclination, with high-rolling investors positioning heavily in puts. With 12 trades leaning bearish, this activity suggests that sentiment surrounding Hershey is cautious, and investors may be speculating on potential downside factors affecting its performance in the near term. In the consumer staples sector, such significant bearish activity could reflect concerns about consumer spending trends or broader economic factors weighing on the company.

Finally, Unity Software $U displayed a clear bullish outlook, with 75% of today’s trades being call options, totaling an impressive $3,084,435 in value. This substantial investment in calls suggests that large investors foresee potential upward momentum in Unity’s stock, possibly anticipating positive developments in its operational or financial outlook. The strong bullish sentiment here could signal that Unity is poised for growth, possibly due to product innovations or favorable industry shifts in the software space.

In conclusion, today options activity across these key stocks provides a snapshot into the market’s sentiment and possible expectations for each company’s near-term future. While Chevron, Devon Energy, and Hershey are surrounded by bearish sentiment, Broadcom and Unity show strong bullish inclinations from high-stakes investors. NVIDIA mixed sentiment reflects uncertainty in the tech sector, hinting that investors are cautious yet prepared for either direction. For retail investors, these insights into unusual options activity offer an advanced perspective into where the so-called “smart money” is positioning, often providing clues to underlying movements not yet reflected in share prices. #Unusual