Over the past few trading sessions, option activity has been picking up in defensive sectors and may be signaling an early rotation. The concept of sector rotation is that the market will allocate capital in the area that is likely to outperform. If noncyclical parts of the market are starting to ga
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
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 y
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’
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 be
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
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
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 explo
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
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 afte
