Listen. You all know the deal. Kian pulls some flow, Jon pulls some flow, Jersace writes about the chart, and we typically have good results following these whales. Not much else to it. So without further rambling, let’s check in on today’s basket eh?
Notable Flow:
MCHP 0.00%↑ 90P STO 12/20
SLV 0.00%↑ 38C 11/22
VKTX 0.00%↑ 90C STO 01/17/2025
CSTM 0.00%↑ 16C 11/15
MCHP 0.00%↑ 90P STO 12/20 Exp
Vol: 250 OI: N/A Premium: $387,000 Avg. Cost: 15.5
A massive whale just placed a bold bullish bet on Microchip Technology (MCHP), and it’s turning heads! With MCHP trading at $75.42, this big player is selling a December 90 strike put, essentially wagering that the stock will soar past $90 by the time the contract expires. For this whale to rake in profits, MCHP needs to make an ambitious 19% move upwards before December rolls around. It's a risky play, no doubt, but the sheer size of the bet shows some serious confidence. And here’s the kicker—there’s no open interest in this contract, meaning it’s a brand-new, fresh-out-the-ocean position. The stakes are high, but this whale seems ready to ride the wave!
On the chart, Microchip Technology ($MCHP) has been forming a potential bullish pattern, with a consolidation phase hinting at an upcoming breakout. Currently, it seems to be trading within a symmetrical triangle or flag pattern, which often signals a continuation of the previous uptrend. A breakout above key resistance around the $80-$82 range could suggest renewed buying momentum. If the stock breaks above its 200-day moving average, which it's been testing, it could act as a further bullish signal for continued upward momentum toward year-end. Keep an eye on volume, as an increase during a breakout would confirm the strength of the move.
SLV 0.00%↑ 38C 11/22 Exp
Vol: 47,777 OI: 138 Premium: $1.05M Avg. Cost: 0.22
SLV has been on a solid run lately, but one whale isn’t satisfied—they're betting on an extra 20% out-of-the-money move in just 31 days! This isn’t just any small-time trade either. We’re talking one massive order with over $1.05M in premium, 47,777 in volume, and just 138 open interest. Talk about shaking things up! The risk-to-reward here? Pretty sweet, considering it’s only a $0.22 per contract trade. Nothing fancy or complicated about this play—it’s a straightforward, high-conviction move. Sometimes, less is more, right?
As of now, $SLV is trading above $30, which is well above previous key resistance levels. The ETF has been in a strong uptrend, making a series of higher highs and higher lows. It recently broke out of a consolidation zone around the $26-$28 level, signaling strength. This breakout has been accompanied by strong volume, confirming the move. The next significant resistance level to watch is around $32-$34, which could serve as a potential upside target. If $SLV continues to hold above the 50-day and 200-day moving averages, the bullish momentum could carry into the end of the year, especially if macroeconomic conditions continue to favor safe-haven assets.
VKTX 0.00%↑ 90C STO 01/17/2025 Exp
Vol:3,267 OI: 1,236 Premium: $1.28M Avg. Cost: 3.94
VKTX—yeah, you know the name. This stock’s been a rollercoaster, thanks to all the buzz around obesity and GLP-1 drugs. With earnings dropping tomorrow and key data coming in November, it’s bound to get wild. It’s one of Kian’s favorite stocks, but here’s the catch—he's not loving this latest position. Why? Some trader just threw down a serious bet that VKTX won’t even sniff $90 by expiration. They sold a call to open, with a whopping $1.28M on the line, over 3,200 in volume, and about 1,200 in open interest. If you’re long on this stock, you’re probably crossing your fingers this whale has to buy back the position for a loss. But if you’re short? You’re grinning ear-to-ear, ready to scoop up that contract for a lower premium.
A breakdown below key support levels, such as $55 or $50, could signal a reversal of the current uptrend, potentially leading to a sharper pullback. If macroeconomic conditions or clinical trial results disappoint, the stock could face increased selling pressure heading into 2025. Sorry Kian!
CSTM 0.00%↑ 16C 11/15 Exp
Vol: 12,571 OI: 62 Premium: $569k Avg. Cost: .45
This isn’t a stock you see lighting up the options flow too often, but today? It’s a different story. If you check out the chart, you'll see it had the biggest options volume spike in the last 14 days—quite the eye-catcher. And it’s a clean trade too, with almost every order hitting the ask, volume blowing past open interest, and a 7% out-of-the-money move by expiration. But there’s a catch—this is an earnings bet. Mr. Whale is diving in, hoping for stellar earnings results (though we all know that doesn’t always mean a stock will follow suit). High risk, high reward—classic whale behavior!
Currently trading below $15, CSTM has been in a corrective phase, but there are signs that it may be setting up for a potential bounce. The stock appears to be forming a descending wedge pattern, a bullish reversal pattern where price makes lower highs and lower lows but starts to converge. This pattern often precedes a breakout to the upside. If $CSTM breaks above the $15-$15.50 resistance level, it could signal a reversal of the downtrend and a move higher.
Thanks for tuning in for todays read, if you enjoyed it, likes are greatly appreciated.
Best Regards,
Kian, Jersace, & Jon