Good evening all - here’s what we’ve got.
Notable Flow:
GE 0.00%↑ 210C 11/15 Exp.
GDS 0.00%↑ Call Roll: 15C 01/17/2025 Exp. STC and 23C 03/21/2025 Exp. BTO
CCL 0.00%↑ 18P 10/04 Exp.
DFS 0.00%↑ 135P 11/15 Exp.
GE 0.00%↑ 210C 11/15 Exp.
Vol: 10,281 OI: 917 Avg: $2.15 Prem: $2,212,242
This Whale traded over 10k contracts between 3:10 PM and 3:15 PM on Friday, 09/20, mainly at the Ask, paying $2.15 per contract. It caused the highest spike in the net call premium in the past 30 days.
GE Aerospace has been a very good performing asset YTD and looks to continue it’s gains as it has broken free of the recent range making new all-time-highs. This whale is seemingly a breakout buyer as the timing of the flow comes only a few sessions from this range break and the retest. GE stock has experienced positive momentum, particularly due to optimism around the aviation sector’s recovery and the company's ongoing restructuring. If the market cooperates, GE could be a nice asset to have with supportive structure.
GDS 0.00%↑ Call Roll: 15C 01/17/2025 Exp. STC and 23C 03/21/2025 Exp. BTO
This Whale opened the trade on 08/20, trading 3k contracts at the Ask with a $1.60 fill. On 08/21, it added 2k other agreements for a fill of $3.12, paying a total of $1.12 million for the entire trade. The trader closed this chain yesterday by trading the 5k contracts at the Bid and getting a fill at $5.90, with a total profit of $1.85 million. But this Whale still believes in more upside for the stock and rolled the 15C to the 23C, adding around 10k contracts at the Ask and paying an underlying $2.95 million.
We previously wrote these 15 calls up which worked exceptionally and as mentioned, the whale wants more. Looking to ride the momentum with more time, more cushion, and likely more confidence. The stock's long-term prospects are tied to China's broader technology sector and its ability to maintain a leadership position in the data center industry.
GDS can be an attractive play on China’s cloud and data center growth for those with minimal China exposure if you desire to have any.
CCL 0.00%↑ 18P 10/04 Exp.
Vol: 19,396 OI: 753 Avg: $0.56 Prem: $1,083,524
This Whale traded 15k contracts at the Ask, making up for almost all the daily volume on this chain and paying almost $ 900k for the trade. Carnival Corporation will report its 2024 Q3 Earnings on 09/30, investors expect an EPS of $1.16 and revenues of $7.817 billion.
Testing the upper band of this yearly range, Carnival Cruise Lines faces a similar spot to where they most recently rejected and lost over 27% in value. This could be as simple of a thought as this occurring again. The asset is also relatively extended as it is nearly 10% higher than the 10DMA at current levels which typically warrants a pullback.
DFS 0.00%↑ 135P 11/15 Exp.
Vol: 2,627 OI: 87 Avg: $5.90 Prem: $1,548,732
This trader placed a bearish bet by trading 2.5k contracts at the Ask and paying around $1.5 million, getting almost all the put premium for the day. The net put premium reached +1.6 million on Friday, which was the highest level in the past 30 days.
XLF 0.00%↑ - the financial ETF for the S&P500 Financial Sector, is nearing all-time-highs again which did not bode well previously leading to a decrease of -5.5% As it nears this spot, Discover Financial finds itself in a similar situation whereas last time, it had lost nearly -12% in value. I have displayed the XLF price line in white on the chart of DFS below to depict the correlation.
Back to football for me. Aren’t Sundays glorious? Hope you guys enjoyed the Bull/Bear bag we provided for you all today. As always likes are greatly appreciated and we will see you in the morning for the week ahead.
Ciao,