Wednesday, April 24, 2024
A large options block trade hit the tape last week in one of the biggest gold producers, Barrick Gold (GOLD). The trader placed a 3-legged options spread using 23,000 options contracts per leg. The spread is likely a put spread collar that allows GOLD some upside potential while hedging against a portion of downside risk. […]
Normally sleepy regional banks have been wildly active in options trading after the SIVB crisis from last week. First Republic Bank (FRC) is a regional bank that investors have been very concerned about, with the stock down over 70% in a week. Despite bankruptcy concerns, some options traders
The banking sector got hammered last week after SVB Financial (SIVB) had to sell some assets for a large loss to increase liquidity. The crash in SIVB shares sent the SPDR S&P Regional Banking ETF (KRE) down 8% in a day. Options trading in KRE was unsurprisingly brisk given the added volatility. However, a couple […]
The Invesco QQQ ETF (QQQ) is a wildly popular ETF that tracks the Nasdaq-100. It’s a tech-heavy index that has been in a sideways pattern for much of the last year. When a stock is moving sideways, a covered call can be a good way to optimize returns while holding the shares. In this case, […]
Silvergate Capital (SI) is a crypto-friendly bank that is down over 60% in a week (at the time of this writing). The regional bank is getting hit hard after admitting the company has concerns about its operational viability after the collapse of the crypto market in recent months. Several short-term options block trades suggest that […]
A popular method of trading the energy sector is by using the Energy Select Sector SPDR ETF (XLE), which tracks the energy stocks of the S&P 500. A strategist placed a call ratio spread last week that likely signals bullish expectations in energy stocks through April. A ratio spread is a way to reduce the […]
Interest rates have been the focus on 2023 so far (to the surprise of no one). One way to trade interest rates is by using ProShares Ultrashort 20+ Year Treasury Bond ETF (TBT). TBT moves with the direction of rates (yields) and opposite the direction of bond prices. With rates the highest they’ve been in […]
One of the most active ETFs in terms of options trading is the iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The most popular high yield bond ETF, HYG trades over 400,000 options contracts per day on average. A trader recently placed 7,000 of what appear to be HYG covered calls. The position could […]
Electric vehicle companies have come back to earth over the last year or so, with several high fliers taking it on the chin. Lucid (LCID) is an electric car company that may have a bright future but has seen its stock dive in recent months. However, lately, options traders appear to be selling puts in […]
Software company Fastly (FSLY) had a rough 2022, but things are looking up for the company so far in 2023. Analysts have recently upgraded the stock, which also posted better than expected earnings last week. At least one trader believes the positive momentum may continue. The trader purchased a 10,000-lot call spread tied to stock […]
