Great day across the board today for the broader markets as all indices are green on the day, we give thanks.
Notable Flow:
EDR 0.00%↑ 25P 02/25/2025 Exp
UBER 0.00%↑ 77C 10/25 Exp
RTX 0.00%↑ 130P STO 11/15 Exp
WY 0.00%↑ 32P STO 11/15 Exp
EDR 0.00%↑ 25P 02/25/2025 Exp
Vol: 40,675 OI: 10,471 Avg: $0.30 Prem: $1,220,294
This trader is placing a bearish bet by opening puts that are 14% OTM with 136 days to expiration. This ticker has seen a lot of unusual activity in options, especially on the put side. On 09/20, the total put net premium was $904k, while today, the total net put premium is 1.22 million, making it the highest in the past 90 days.
Financially, Endeavor has a negative net margin of -6.23% yet stable operating margins of 2.93%. In recent days, CEO Ariel Emanuel has sold shares which could indicate potential concerns about current stock valuation. The whale may have seen this and decided to take a stab at a short trade on the stock as it is up nearly 30% YTD. Shown on the chart is quite the supply zone which bodes well for bears. A rejection of this zone up here could trend the stock back towards mid-20’s.
UBER 0.00%↑ 77C 10/25 Exp
Vol: 10,600 OI: 407 Avg: $2.62 Prem: $2,772,010
This trader is placing a risky bullish bet by opening calls with only 17 days to expiration. At 9:50 am ET, over 6k contracts were traded at the Ask; after that, the chain got crowded with mixed volume and reached over 10k contracts traded. However, the net premium chart still favored call buying. We must check the OI update tomorrow to see how much out of the 10k volume is stuck overnight in a chain with only 407 contracts opened.
UBER has seen a ton of boost from the popular AI theme the last few months as they gather more and more news from companies such as Tesla in regards to FSD and other AI compatibilities. Short term expiration on this trade makes it riskier than others, but also makes the reward much more exponential as you all know as well. This does not cover their upcoming earnings, however it is less than a percent OTM so it doesn’t take much for this trade to be profitable / ITM.
RTX 0.00%↑ 130P STO 11/15 Exp
Vol: 801 OI: 107 Avg: $8.00 Prem: $640,837
This trader is placing a bullish bet by selling puts on credit. The trader speculates that the stock price will close above $130 by expiration, which is risky because the current price is around $124. The stock price will have to exceed the strike price for this chain to expire worthless. In this case, the trader can close the position and collect the premium.
Raytheon is commonly seen as a defensive name for traders to have in their investment baskets when market tides seem risky or even rumors of recessions begin to loom. In this particular instance however, the asset just seems resiliently strong with relative strength over the previous few weeks. Currently trading at all-time-highs, this trader looks to press the gas and ride the momentum even further. Moving average’s are nearby and relatively flat as the stock doesn’t typically move much on a day-to-day basis allowing these average’s to maintain pace rather than being extended.
WY 0.00%↑ 32P STO 11/15 Exp
Vol: 12,359 OI: 68 Avg: $0.60 Prem: $743,303
This trade was labeled as a floor trade, which means it took place on an exchange's floor. This floor trader is placing a bullish bet on the stock by trading 12.3k contracts on credit for a total premium of $740k. This is the highest options volume that the stock had in the past 90 days. If the stock price remains above 32 by the expiration date, the contracts will expire worthless, and the trader will be able to collect the premium for profits.
Slight wedge here into moving average’s, 10 above, 50 below. Break above the 10DMA would trigger further upside as WY found support at 32.61 which was previously resistance. This bodes well for future price action assuming the market cooperates alongside the upcoming CPI print. Have we made the joke about how this CPI print is the most important one of our lives yet? If we haven’t I apologize, it is. Womp womp, let’s go REIT’s.
That concludes our team effort of rambling in today’s session and we hope you all enjoyed it! Thanks for hanging out with us for a few minutes, and if you enjoyed the article, likes are greatly appreciated.
Best Regards,
Kian, Jersace, & Jon