Unusual Options Activity Wrap-Up

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•  22 Nov 2024
 

Today’s options activity paints a fascinating picture across several high-profile stocks. At the close of this trading week, investors should take note of the unusual activity in the options markets for certain names, which could signal potential future movements in their stock prices.

Booking Holdings $BKNG is drawing attention with its noticeable bearish positioning. A closer look at the options history shows that 64% of the trades leaned bearish, with whales making significant investments in puts, totaling $285,901, against a much larger volume in calls, which amounted to $2.26 million. This skew could suggest that large investors expect some downside potential or at least see volatility on the horizon, warranting caution or hedging strategies for those holding long positions in BKNG.

Next, Constellation Energy $CEG shows an intriguing mixture of bullish and bearish bets. With 54% of trades taking a bullish stance and the remaining showing a more bearish outlook, the options activity points toward a neutral-to-positive sentiment, with calls surpassing puts. Investors should consider this mixed signal as a possible indicator of growth but also be mindful of the hedging activity from larger players, particularly given that CEG’s options volume saw higher investment in calls than puts, signaling a relatively positive outlook.

Coinbase Global $COIN is another stock that caught the attention of the options market. With financial giants making bearish moves, particularly in the form of puts, it seems investors expect some downside risk for the stock. The fact that 61% of trades were bearish, combined with a lower total value in calls compared to puts, suggests that there could be significant market pressure or negative sentiment surrounding COIN, potentially due to regulatory concerns or broader crypto market volatility.

Core Scientific $CORZ has been quite the topic today, with 64% of trades leaning bullish. The notable gap between call and put activity indicates that traders are optimistic about CORZ's potential, despite some smaller hedging activity. Given the larger volume in calls, investors may want to look for potential upside in this stock, especially if it can sustain momentum moving into next week.

Alphabet $GOOG is also seeing heavy interest, with 55% of trades leaning bullish. Despite this, there was still considerable bearish activity (33%), signaling that large investors are cautious. The balance of calls and puts in such a high-profile stock could point to continued market uncertainty. Investors should stay alert, as such mixed signals often precede important news or a shift in market sentiment for GOOG.

Lemonade $LMND, much like $CEG, has also seen significant call activity outpacing puts. This suggests that the stock has some strong bullish sentiment, but the relatively high percentage of traders making bearish bets still keeps caution in play. With 70% of trades bullish and 20% bearish, LMND could be primed for some upside, but traders should remain aware of any potential market headwinds.

NVIDIA $NVDA stands out as a stock where a significant bearish stance has emerged. A noticeable shift in options activity toward puts indicates that some larger investors are expecting a pullback, possibly anticipating market corrections or other broader market risks that could impact the semiconductor giant. Retail investors should take this into account and be wary of potential volatility despite NVDA long-term strength.

Finally, PayPal Holdings $PYPL has witnessed a fairly balanced but somewhat bearish leaning activity, with 50% of the trades reflecting bullish sentiment. The high volume of puts indicates that some investors are hedging their positions, possibly anticipating a pullback or broader market correction that could affect PYPL’s performance.

As we close out the week, investors should pay close attention to these unusual options activities. These trades reveal that institutional players are positioning themselves for potential volatility, and understanding these trends can provide valuable insights into the future performance of these stocks. With mixed signals across the board, it’s essential to remain cautious but also to watch for any news that could sway these movements further.

#Unusual