Welcome back. As I mentioned in last nights read, earnings season has arrived, and we’ve got quite the week for some extra moves in the market to create plenty of setups. Let’s take a look at what the whales were buying today.
Notable Flow:
CLS 0.00%↑ 60C 10/25
SLB 0.00%↑ Bull Risk Reversal 45C BTO 40P STO 2/21
BBIO 0.00%↑ 25P STO 12/20
PRGO 0.00%↑ 27.5/30 Call Debit Spread 11/15
CLS 0.00%↑ 60C 10/25 Exp
Premium: $542k Vol: 2,759 OI: 120 Avg Cost: 2.05
Flow: Rough day for this whale so far. 30 minutes into market open we saw a purchase of these calls for around $192k (first green candle) then saw some more buys as the day went on, for a total of $542k. Whale bought these calls at around 2/contract and is currently sitting at 1.65. Down but not out! There is no sign of selling for a loss. Just have to see how much open interest carries over into tomorrow. Pretty aggressive trade. 6% OTM move that expires this week.
A popular proxy to the likes of AMD 0.00%↑ & NVDA 0.00%↑ most days, has struggled as of late declining ~12% the previous 6 sessions high-to-low. It is worth noting that AMD has their quarterly earnings report this coming Wednesday where CLS could receive an after hours boost assuming the market reaction to the report is positive. Certainly an idea of how to gamble on their earnings for a discount.
SLB 0.00%↑ Bull Risk Reversal 45C BTO 40P STO 02/21/2025 Exp
Flow: This whale is making a sized bullish trade for SLB. They are purchasing the 45 calls for over $832k in premium, 4k in size and selling the 40 puts for same amount of size, and $675k in premium for 2/21exp. The goal for this trade is for the puts to expire worthless or decrease in value, and the calls to increase in value by expiration. These types of trades have been pretty successful this past year.
SLB could quickly become bullish heading into early 2025, supported by strong oil demand and increased energy sector spending. The stock is also forming an inverse head and shoulders pattern on the daily chart, signaling potential for further upside. With its focus on advanced oilfield services and new energy initiatives, SLB is well-positioned to benefit from both traditional and sustainable energy trends. This trader seems to believe that 40 was the bottom and that he can gather further upside into Q1 of 2025. We’re pretty much on the 200wk-MA as well, which can act supportive at times.
BBIO 0.00%↑ 25P STO 12/20exp
Premium: $589k Avg Cost: 2.54
Flow: As you can see in the chart above, there were two put selling transactions that were placed for this trade. At 10:15AM, they placed their first order for $245k and second order for $260k. Whale got more confident that this may be the bottom for this stock. There was a small close on these for around $79k but that doesn’t really change the thesis on this trade. Goal is to buy back these contracts for a much cheaper price, or even $0!
The current prices of 25 for BBIO is remembered fondly around this time as a support level before going on a run of 79% into the end of December. This trader seems to believe he has it here yet again. Offering long time support here, an ideal bounce reclaiming those nearest moving average’s would bode well for fellow BBIO bulls heading into their upcoming earnings report at the end of the month. Plenty of tradable range above this current spot, but that remains to be seen.
PRGO 0.00%↑ 27.5/30 Call Debit Spread 11/15 Exp
4,000 Size $268k Premium
Flow: Very clean trade here. Whale is placing a bullish call debit spread, buying the 27.5 call for $436k in premium and selling the 30 call for $168k in premium. How much are they paying per contract? It is the difference between the two spreads. (1.09-.42)= .67/contract. Max gain is width of spread minus premium paid. (2.5-.67)=1.83/contract. Great size, nice premium, with some time on the contract as well.
PRGO is showing potential for a bullish move over the next month, driven by its strong position in the consumer self-care and over-the-counter (OTC) health products market. Recent stability in earnings and growing demand for OTC products could support upward momentum. The stock is also nearing a key support level, which could trigger a bounce if market conditions remain favorable. With its focus on healthcare essentials and a solid product pipeline, PRGO has room for short-term gains, especially if it sees positive developments in consumer health trends. Their upcoming earnings report is November 6th. Chart is also in a similar spot a few months previous that we saw this sort of move from a rounded base.
Alright folks we’ll let ya go. Enjoy Monday Night Football or whatever your nightly white whale may be. If you enjoyed the article or even fancied one of the unusual flows from the day, likes are greatly appreciated!
Cheers,
Kian, Jersace, & Jon