Beleaguered retailer Bed Bath & Beyond (BBBY) was once a favorite among meme stock traders. But just last week, the company expressed doubt that it will be able to continue operating without filing bankruptcy. The stock price dropped 25% on the news, falling under $2 a share. Most options action on the day appeared to […]
Author: Jay Soloff
Trade of the Week: PTON
Although Peloton (PTON) has struggled since the pandemic, the embattled exercise company may have some bullish prospects in the coming months. A massive diagonal call spread traded last week in PTON options, which looks to be moderately bullish on the stock for 2023-2024 (and possibly into 2025). A diagonal spread is a combination of a […]
Will ARKK Rebound In 2023?
2022 was a very tough year for the ARK Innovation ETF (ARKK). Cathie Wood’s flagship fund saw a nearly 70% share price drop for the year. A 40,000 lot of short calls that traded last week in ARK options suggests there could be some (but not a lot) of upside for the embattled ETF early […]
Trade of the Week: Corporate Bonds
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is a popular asset allocation ETF for those wanting exposure to corporate bonds. Many asset allocators have at least a portion of their portfolio in corporate bonds (non high-yield variety), so LQD sees a lot of options action. Last week, a strategist bought over 40,000 […]
Trade of the Week: ARKK
While it’s been a rough year for the Ark Innovation ETF (ARKK), a large options trade may suggest a brighter 2023. A strategist purchased what appears to be a 30,000-lot of covered calls on ARK that expire in February. The covered calls allow for over 10% upside potential in share appreciation before capping out, while […]
Trade of the Week: DLO
It’s always interesting to see a very large spread trade occur in a stock that doesn’t have a very active options chain. Dlocal Limited (DLO) offers a payment system for emerging markets and generally trades about 5,000 options per day. On one day last week, one spread accounted for 30,000 contracts. It appears to be […]
Is AMC Going To Spike Again?
AMC Entertainment (AMC) was a popular meme stock for Reddit/Robinhood traders back in the height of the meme stock frenzy. However, the stock hasn’t done much in recent months – until now. Last week the stock jumped 13% in a day with over 3x more options volume than normal. One of the larger trades on […]
Trade of the Week: Sunpower
When a stock is trading in a range, sometimes a covered call strategy can be a good way to take advantage of the situation. Sunpower (SPWR) has been range-bound for most of the year and is trading somewhere near the middle of its range. A trader is attempting to capitalize off the situation by making […]
What’s Next For Activision-Blizzard?
Video game giant Activision-Blizzard (ATVI) has agreed to be purchased by Microsoft (MSFT) for $95 per share. However, the government may thwart the proposed deal due to antitrust concerns. That’s why the stock is trading in the low $70s instead of near the buyout price. One trader appears to have decided that the ATVI share […]
Trade of the Week: Natural Gas
While trading tends to slow down during Thanksgiving week, the weather doesn’t always comply. Freezing temperatures have caused a surge in natural gas prices, and trading has become brisk in the United States Natural Gas Fund (UNG). UNG is the most popular pure play ETF for natural gas. A sophisticated trader recently placed what looks […]