I can’t speak for the general populous but my head is spinning from this price action thus far in September. The seasonality furu’s are beating their chests and we are not even two full sessions into the month.
Few.
Anyways, we got some large & interesting bets for you all today. Let’s take a look.
Notable Flow:
CORZ 0.00%↑ 22C 01/16/2026 Exp
MKC 0.00%↑ 75P STO 12/20 Exp
TSLA 0.00%↑ 300C 02/21/2025 Exp
IREN 0.00%↑ 14C 12/20 Exp
DKNG 0.00%↑ Short Diagonal Spread - 44C BTO 11/15 Exp & 43C STO 12/20 Exp
CORZ 0.00%↑ 22C 01/16/2026 Exp
So this trade was actually purchased yesterday for a total of $837,000 in total premium, 6,766 volume and 444 open interest. Today, 4,914 of those contracts carried over which is always a good sign and helps us understand how confident this specific whale is. This flow stands out because someone is paying a nice premium for a 137% OTM move.
Core Scientific is one of the largest publicly traded blockchain infrastructure providers in North America. The company is primarily engaged in Bitcoin mining, offering both self-mining operations and hosting services for third-party miners. Core Scientific operates large-scale data centers that are specifically designed to handle the computationally intensive process of Bitcoin mining.
While their main focus is mining, they do offer other services such as hosting to other miners allowing them access to its centers and power to mine without needing to manage the physical hardware themselves. In addition, they also offer machine learning and AI services to increase their broad network of services outside of cryptocurrency.
By doing so, CORZ has not only allowed themselves to be positioned for more streams of revenue, but also cut out the risk associated with being a sole miner of crypto. As you may know, Bitcoin went through a halvening cycle earlier on this year. This result caused many miners to lose value due to the fact the existing supply was cut in half, meaning it now costs nearly a full bitcoin, to mine a mere half-bitcoin. Yes, you are correct, that is not profitable.
Not much to note as the company only became public in January of this year so the action is limited and all shown on the chart below. However, we are ~18% from all time highs currently and trading below the 10/20/50 daily moving average’s. Assuming CORZ can catch another break of momentum, there could be some untapped upside potential in uncharted territory. I have pulled a trend-based fibonacci extension to showcase some possible resistance levels in this range.
MKC 0.00%↑ 75P STO 12/20 Exp
Very straight forward position from this whale. They are selling to open 4,231 contracts at an average price of 1.31 for around $555,000 in premium. This is a 7% OTM move, goal for them to buy these back for a much lower price. What makes this interesting is in the last 3 days, there has been almost little to none options volume. Today was the highest amount in the last 7 days.
While the name may sound unfamiliar, believe me, you are. A household brand name for spices, seasonings, and flavorings alike, McCormick and Company has established itself as a global leader in the industry. I’m sure you have all heard of or even possibly used Old Bay seasoning before, and you guessed it, owned by MKC.
McCormick has a history of steady financial performance, characterized by consistent revenue growth, strong margins, and a solid dividend track record. The company's business model benefits from strong brand recognition, global distribution capabilities, and a diverse product portfolio that caters to both individual consumers and large-scale food manufacturers. They are also considered a stable, defensive investment, often sought after by income-focused investors due to its reliable dividend payouts. The company has a long history of increasing dividends, making it attractive to those looking for steady income. The stock tends to perform well in uncertain economic times due to the essential nature of its products.
In regards to the chart itself, MKC has been relatively strong as of late not flinching to the drastic moves made in recent days continuing to surf the 10 & 20 DMA’s upwards.
TSLA 0.00%↑ 300C 02/21/2025 Exp
Flow is almost always messy on Tesla, almost everyone knows that, but what makes this one stand out more than others? This whale or whales has been accumulating a 300 strike that expires in February for over $8.5M in premium, 7,224 volume and 2,177 in open interest, expecting a 36% OTM move by expiration. Yes there are a bit of bids in the order, the majority of trades are at the ask. Will check how much of this volume carries over into tomorrow.
There are two-sides of this coin. You either love Elon living & dying by the sword, or you hate him and call him Enron, the greatest pumper outside of Jensen Huang. Tesla bulls have been calling for 300 ever since it lost this mark last summer in July, and it seems we may just be on the way yet again.
Tesla is primarily known for its electric vehicles, but its operations extend far beyond just cars. The company is involved in several key areas:
Electric Vehicles (EVs):
Tesla's product lineup includes the Model S, Model 3, Model X, and Model Y, with the Cybertruck and Tesla Semi slated for future release. Tesla's EVs are known for their performance, range, and advanced technology, including Autopilot, Tesla's driver-assistance system.
Energy Generation and Storage:
Tesla offers energy storage products like the Powerwall, Powerpack, and Megapack, as well as solar energy solutions, including solar panels and the Solar Roof. These products aim to create a sustainable energy ecosystem.
Autonomous Driving:
Tesla is a leader in the development of autonomous driving technology, with its Full Self-Driving (FSD) software being continuously updated. The company has a significant data advantage due to its large fleet of vehicles on the road, all collecting data to improve the AI behind FSD.
Supercharger Network:
Tesla has built an extensive global network of Superchargers, enabling Tesla owners to charge their vehicles quickly and conveniently, supporting long-distance travel and addressing range anxiety.
Arguably the only company that is actively working on the two physical use cases of AI being self driving vehicles and AI robotics. There are obvious cases to be made that this is not the case, but Tesla’s adamancy on these sectors of business is comparable to a very short list. Up and to the right, anon.
IREN 0.00%↑ 14C 12/20 Exp
This is a very interesting flow trade, not a lot of premium but it’s a start. Over $140k in total premium, 2,758 volume, 1,154 in open interest expecting a 105% OTM move, contract costing just under .60/con. Today, they have been purchasing it in 3 separate orders as you can see in the chart. Only way to confirm if the whale is still confident in the trade is to check the open interest tomorrow.
Yay, another Bitcoin miner …
Iris Energy is a Bitcoin mining company that focuses on sustainable operations by utilizing renewable energy sources to power its mining operations. The company operates data centers designed specifically for Bitcoin mining, and its business model is built around minimizing its environmental impact while maximizing efficiency and profitability.
I previously discussed the risks associated with Bitcoin miners and their profitability post-halvening cycle and the volatility that comes in hand with these such assets. IREN is very closely tied to the broader cryptocurrency market, particularly Bitcoins price itself, warranting a lot of drastic moves both directions. Current outlook is closely linked to the future of Bitcoin and the renewable energy factor here is a positive that could attract environmentally conscious investors.
The stock is currently trading below all relative moving averages, most notably the 200DMA around 7.08. A reclaim of not only this level, but the others (10/20/50) is directly correlated the Bitcoins price action meaning this bet is very bullish BTC itself. Tread at your own risk Mr. Whale.
DKNG 0.00%↑ Short Diagonal Spread - 44C BTO 11/15 & 43C STO 12/20
This whale is creating an interesting trade, they are buying the 44 call for 11/15exp for $2.1M in premium 32,000 in volume for around .66/contract and simutaneously selling the 43 call for 12/20exp for $3.97M, 32,000 in volume for around 1.22/contract. In short, this whale is expecting a neutral or almost bearish move short term.
We previously noted this name a few weeks back with the thesis of sports bettors coming out in droves for not only the upcoming NFL season, but also College Football returning, and MLB nearing October’s playoffs. This is the epitome of seasonality and you cannot change my mind. Sports betting in these final 4 months of the year are the highest rate of sports betting each year as people clamor for a chance to make their lives more entertaining with uncertain risks.
The chart looks poised for a breakout in cahoots with this thesis as it pushes the top of the very same trendline I displayed a while back. Currently wedged between the 20DMA from below and the 10DMA from above + the trendline from local highs (March 2024), DraftKings looks like a good upside opportunity for investors paired with this notable flow. Ideally, you get a break of this trendline and a test/break of the 50DMA at 35.41 towards the shown levels of resistance turning them to support as we near those aforementioned local highs.
Large bets, crypto furu’s, and sports gamblooors meet NYSE investooors. Did I mention Elon? Thanks for checking in with us as we love providing you all with some back-pocket tools and creative ideas throughout the week. We truly hope you appreciate the time and effort that goes into these and look forward to the future. As always, likes are greatly appreciated and let us know in the comments what you would like to see if anything more.
Cheers Gang,