Homebuilders Rally as Large Call Spread Appears on LEN
LEN Unusual Option Activity Report Homebuilders like Lennar Corp (NYSE: LEN) are seeing a strong bid on News of the Biden administration’s proposed $15,000 tax credit for new home buyers. As homebuilding stocks are rising on Wednesday, option traders found opportunity in LEN as it outperformed with over a 6% gain at the time of…
This Surprise Sector Continues to Lead Markets Higher
In Brandon Chapman's inaugural video newsletter he looks at the big jump in mining stocks and other stocks making an unexpected move before the new administration. Plus stocks with unusual options activity that got on the radar…
WWR Option Activity Looking Bullish for Battery Production
Westwater Resources Inc (NASDAQ: WWR) surged 40% higher on Tuesday as call option volume exploded. The option activity occurred as the inauguration approaches and trades are being made on the potential Biden policies. One of the areas that is looking up is electric power and battery production. As you think about who makes batteries, don’t…
Deconstructing VIX Index Option AM Settlement
The VIX Volatility Spread (VVS) using VIX Index options is a strategy our members have on pretty consistently. This is a relatively low risk and high reward strategy for capitalizing on a sharp move higher in the VIX. Because this trade requires very little maintenance and generally little cost, it’s great to have going as…
Support & Resistance: Technical Analysis 101
Is there a more central concept in technical analysis than support and resistance? Of any other principle, this is extremely central to all traders and is based on the concept of price agreement. Sure, there are the typical descriptions using the imagery of a floor or a ceiling, but what’s really behind it? In this…
MOMO finds its MOJO as Option Volume Surges
MOMO Unusual Option Activity Report Several weeks ago, I did a session for Theotrade on companies looking to break out and Momo Inc (NASDAQ: MOMO) was one of them. It’s fitting that it’s breaking out today on substantial volume and a commensurate surge in bullish option activity. The original thesis was the company’s valuation and…
XLE Big Bullish Option Interest After Goldman Oil Outlook
XLE Unusual Option Activity Report The Energy Select Sector SPDR Fund (NYSEARCA: XLE) gapped lower on the open yesterday as the price seemed ready to retrace following last week’s bounce. That quickly changed as Goldman Sachs raised its summer price target for oil. Their updated price target for the commodity heading into summer is now…
A Beginner’s Guide to Value Investing in 2021
As we kick off 2021, it’s inevitable that the financial media will discuss whether this will be the year for value investors. It’s been a lean decade or more for style investors that plant their flag on the value investing camp. However, it’s a new year and with it comes new opportunity. Let’s explore the…
BFT Find’s Bullish Option Interest Before Trading as Paysafe
BFT Unusual Option Activity Report Foley Trasimene Acquisition II Corp (NYSE: BFT) saw a flurry of call option buying Monday as the SPAC moves closer to trading as Paysafe. According to reports, the deal that was announced on December 7, 2020 will see BFT trade under the name Paysafe on the New York Stock Exchange…
Option Traders Turn on FCX Following Gold and Silver Rout
FCX Unusual Option Activity Unusually large bearish option activity popped up on Freeport-McMoRan Inc (NYSE: FCX) following gold and silver losing 3.53% and 6.92%, respectively. The share price of FCX only finished 0.61% lower but calls into question that near-term potential of the mining stock after its large run. At least for option traders, the…