Halloween off to the races with quite the scare across the broader markets today whilst the whales continue to place large bets with far out expirations.
Notable Flow:
SLB 0.00%↑ 50C 06/20/2025 Exp.
ABBV 0.00%↑ 240C 12/19/2025 Exp.
WSC 0.00%↑ Call Debit Spread: 40C BTO & 50C STO 03/21/2025 Exp.
SYF 0.00%↑ 60C 03/21/2025 Exp
SLB 0.00%↑ 50C 06/20/2025 Exp.
Vol: 16,477 OI: 7,460 Avg: $1.33 Prem: $2,184,419
Over 16k contracts were traded on this chain today, with almost 12.5k Ask volume. There was already 7.5k in Open Interest. If our assumptions are correct, the new Open Interest should be close to 20k tomorrow. Additionally, on October 29, over 10k contracts were traded at the Ask on the 42.5C 01/17/2025 Exp., which now has an Open Interest of 13.7k.
Today, the company announced its OneSubsea joint venture contract with BP to work on the Kaskida project, a deepwater development in the Gulf of Mexico.
Although showing significant weakness, SLB is coming into a pivotal mark on the chart here at 40.00. This can be considered a big psych level and support level for traders looking for good r/r locations. Even though the stock is trading below the weekly MA’s, the news noted above is promising for long term investors.
ABBV 0.00%↑ 240C 12/19/2025 Exp.
Vol: 589 OI: 416 Avg: $8.64 Prem: $508,890
587 contracts were traded at the Ask in a single trade, exceeding the previous Open Interest of 416 contracts. This trader paid over $500k for a trade that expires in 414 days. The stock rallied over 6% yesterday after the company announced its 2024 Q3 earnings, beating analysts’ Revenue and EPS estimates and increasing its quarterly dividend. Today, the company partnered with EvolveImmune Therapeutics to develop cancer treatments.
ABBV has been incredibly strong for quite some time now as I show the monthly chart being near vertical. Behind new partnerships and good quarterly reports, this trader looks to capitalize on the asset long term into the end of next year. Spots to look out for any dips could be 200 & 180. Blue skies ahead as the stock trades at ATH’s so hard to note any resistance in uncharted territory.
WSC 0.00%↑ Call Debit Spread: 40C BTO & 50C STO 03/21/2025 Exp.
This trader sold over 20k contracts of the 50C on credit and used part of that credit to buy over 20k contracts of the 40C. Paying $1.53 per contract and over $3 million for the whole trade. This trader is bullish on the stock, and it can have a max profit of $8.47 per contract.
The company announced its 2024 Q3 earnings today, with disappointing results and missing analysts’ estimates; this caused shares to plunge over 13%.
Currently trading below supporting moving average’s on the weekly time frame, we rest on a key level of support just above 33 which previously acted as the trigger for the last two rallies. Nice risk reversal idea here placed by the whale to cover some risk by selling calls while also being long calls closer to the money. Worst case scenario, traders can look for additional adds at psych level of 30 or avoid the trade entirely.
SYF 0.00%↑ 60C 03/21/2025 Exp
Vol: 3,724 OI: 138 Avg: $3.58 Prem: $1,332,162
This chain had repeated hits across the trading session, with a total of 3.7k volume and 3.1k contracts traded at the Ask. The Call Net Premium reached its highest levels since 10/16, while there hasn’t been any significant Put activity during the last 30 days.
The company's recent strong financial performance, including a 29% year-over-year profit growth in Q3 2024, coupled with its undervalued status compared to peers, paints an attractive picture. Despite concerns about consumer health, Synchrony's growing interest income and stabilizing delinquencies demonstrate resilience. Potential interest rate cuts in 2025 could further boost profitability. With the stock riding an uptrend and touching all-time highs, supported by ongoing share repurchases, $SYF's momentum could continue into early 2025. While risks persist, the consensus price target of $60.10 suggests potential upside for this financial services stock.
That’s all from us today. Protect your gains as we head into election week with increasing uncertainty and volatile movement. If you enjoyed todays read, likes are greatly appreciated.
Best Regards,
Kian, Jersace, & Jon