unusual options activity to watch: Monday after-hours analysis

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•  18 Nov 2024
 

The unusual options activity today is signaling a cautious or bearish outlook for many of these stocks. As always, it’s essential for investors to consider the broader market context and any upcoming earnings or news events that could further impact these companies. For those looking to time their entry points, the key will be monitoring how these stocks behave around their support levels and reacting accordingly. After-hours trading could offer further clues, so stay tuned for potential developments.

First up is Cisco Systems $CSCO, where there’s been a significant increase in bearish options activity. The big players are positioning themselves for a downturn in Cisco's stock, with large put contracts traded. This kind of movement, particularly at such a scale, often signals that investors may have access to information suggesting a potential decline in the stock’s price. For retail traders, it's important to pay close attention to any major news regarding Cisco, as this unusual options volume could indicate a forthcoming shift in sentiment.

Meanwhile, Lennar $LEN has also seen heightened options activity, with a clear lean towards bearish positions. Despite some calls, the majority of trades on Lennar’s options were puts, reflecting a cautious or negative outlook. The significant put volume points to a possible correction or a tougher outlook for Lennar’s stock in the near term. With market conditions uncertain, this could be a signal for traders to keep a watchful eye on the housing sector and the broader economic indicators that might impact Lennar’s performance.

Turning to Lowes Companies $LOW, bearish sentiment continues to dominate, with large amounts of put activity surfacing. As with Cisco, this might indicate that institutional investors foresee a downside in Lowes’ near future. Such unusual options behavior often suggests that someone with significant capital believes the stock is poised for a dip, making it a critical stock to track closely in the coming days.

Then we have Lyft $LYFT, where investors have again taken a more bearish stance, with the majority of options trades being puts. Given Lyft’s volatile nature, this could suggest that investors are bracing for further weakness, especially as competition and regulatory scrutiny continue to mount. For anyone holding Lyft, it's worth considering the possibility that these trades reflect a deeper market correction for the company in the near future.

Marvell Technology $MRVL also stands out today, with options traders making significant moves in both directions. A noticeable amount of both puts and calls were traded, suggesting mixed sentiment around the company. This could imply that some investors are hedging their bets, while others are looking for a positive turn. Marvell’s performance could hinge on upcoming earnings reports or any developments related to the semiconductor industry.

Finally, Palo Alto Networks $PANW has shown considerable put activity. Investors are clearly placing their bets on a potential decline, as more than half of the trades observed today were on the bearish side. Given the growing competition in the cybersecurity industry, this could be an indication that investors are preparing for increased pressure on Palo Alto’s stock price.

Lastly, Symbotic $SYM has also seen bearish options activity, with investors indicating their belief that the stock is headed lower. Such large trades suggest that there may be concerns about Symbotic’s business prospects, possibly due to industry-wide challenges or company-specific issues that have yet to fully unfold.