Tuesday, December 24, 2024
The market has been in a downturn lately and this include bitcoin. ProShares Bitcoin Strategy ETF (BITO), which tracks bitcoin futures, is down about 18% year-to-date. BITO trades a fair amount of options on the average day – about 70,000 – so it was surprising to see a 22,400 block of April puts trade last […]
One of the most heavily traded ETFs in the world is the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100. The ETF also has massive options trading action, with an average of nearly 2 million options contracts trading per day. It’s been a rough start to the year for QQQ, but options activity suggests it […]
One of the most active options chains last week was in Roblox (RBLX), the popular video game company. RBLX thrived during the pandemic, when it attracted a massive audience (especially among kids). However, with the earnings release last week, it’s apparent that growth has slowed now that pandemic era seems to be coming to a […]
Oil has been on a tear this year, both due to concerns over inflation and also as as a result of high demand/low supply dynamics. Owning oil stocks has generally been a winning trade in 2022, but what if the trend reverses? One smart way to hedge oil exposure is by purchasing puts on an […]
When inflation is a going concern for the economy, we tend to see a lot of action in commodities and natural resource stocks. One heavily traded commodity stock last week was Freeport-McMoran (FCX), which is one the largest copper producers in the world. Options trading in FCX was unusually heavy on a day last week, […]
Last week, shares of Meta Platforms (FB) plunged after the company reported worse than expected earnings. In fact, the stock dropped over 26% in one day, the biggest single-day decline in its history. The company missed on revenues, revenue forecasts, and number of users. Despite the huge down day, about 61% of the 2 million […]
On a very busy week for earnings, Alphabet (GOOGL) shares got a huge boost after beating on both the top and bottom line. With the stock up 8% on the day after earnings, most of the options action was in calls. 71% of the options volume was on the call side, which tends to be […]
While the market has been selling off recently, market volatility can provide a benefit for certain types of trades. The additional premium in options during volatile periods can make covered calls more attractive. For example, Cameco (CCJ) is a uranium producer that has sold off with the market. A strategist used this opportunity to sell […]
There was quite a bit of options action across multiple asset classes last week between the Fed meeting and several key earnings releases. One asset that saw plenty of options activity was gold, particularly SPDR Gold Shares (GLD). GLD tracks physical gold prices and is generally a heavily traded ETF. On a busy day last […]
The ride sharing industry has taken a beating over the last couple years due primarily to the pandemic. But is there a rebound is sight? The pandemic may finally be slowing to a crawl. Lyft (LYFT), one of the two ride sharing giants, has seen its stock price trend down since last summer. However, a […]
