Silicon Flakes: The Breakfast of Chip Champions, Fresh from Your Favorite Fab Factory!
Notable Flow 9/5
How goes it folks? Hope you are all having a great day as many previously mentioned flow plays are paying dividends today. Few of note, APLD 0.00%↑ and TSLA 0.00%↑ absolute killer moves today from recent posts. Enough of that and time to dig into today’s basket which is quite light.
Notable Flow:
QCOM 0.00%↑ 165C (STO) 12/20 Exp.
MBLY 0.00%↑ 12P 01/17/2025 Exp.
GIS 0.00%↑ 70P (STO) 12/20 Exp.
BE 0.00%↑ 10P 10/18 Exp.
QCOM 0.00%↑ 165C (STO) 12/20 Exp.
Vol: 833 OI: 469 Avg: $15.37 Prem: $1,280,290
Most of the volume in this chain took place at 12:25 PM ET when the whale traded 750 contracts at the Bid for over $1.1 million. At the same time this trade was placed, the Net call premium went from +$511k to -600k, which makes us assume that the calls were being sold.
Qualcomm is in a relatively bearish position as of late losing all the relative moving averages in yesterday’s session. This whale decided to sell atm calls in hopes we don’t see those moving averages again anytime soon as he collects premiums while the stock slips lower and lower. I’d imagine their first target would be the recent low of just above 150.
MBLY 0.00%↑ 12P 01/17/2025 Exp.
Vol: 40,030 OI: 33 Avg: $1.53 Prem: $6,125,632
This is the most notable one we noticed today. It had over 40k in volume on a chain with only 33 contracts from the prior days. We will need to see the OI update tomorrow to see how many contracts are being held, as multiple orders came in throughout the day, making the chain a little crowded.
The chart below shows the increase in IV as these orders kept coming in, which suggests that most of the trades were BTO.
Mobileye is known for their autonomous driving and advanced driver systems however they are significantly behind the competition thus dragging the price lower. Currently the stock is at all-time-lows and is hard to gauge where any support will be found given that it has never traded here before.
Challenges of the competition they face comes from the likes of Tesla, Waymo (Google's subsidiary), and NVIDIA in the self-driving car space. Pretty difficult to overtake any of these companies as they are very well known obviously and command the largest amount of consumer’s in the space.
GIS 0.00%↑ 70P (STO) 12/20 Exp.
Vol: 4,761 OI: 154 Avg: $1.41 Prem: $670,580
With a straightforward flow, this Whale is placing a bullish trade by selling calls. The Bid action and decline in the put premium suggest that the trade is STO. The stock is up 20% since the company reported its Earnings on 06/26/2024 for its F24 Q4. Even though the company reported a 1% decline in Organic Net Sales Growth, the 2-year growth rate was +4%. Additionally, other segments met or exceeded the company’s F24 guidance.
This flow will cover the company’s next earnings report on 09/18. Investors expect an EPS of $1.055 and revenue of $4.78 billion.
A very strong name as of late surging just over 20% in the last 36 sessions. Being the leading manufacturer and marketers of branded consumer foods, General Mills is constantly poised to be a staple consumer brand in the market. Steady revenue, diversified product portfolio, and strong loyalty keeps this business model afloat YoY with dividend payments to long-term investors.
On the verge of the next stage of it’s breakout, it faces a resistance level of 74.50, which could trigger further upside towards 80 assuming the market cooperates and these moving averages begin to catch up. Which brings me to my next point, some would consider this stock slightly extended but not too much to cause serious worry.
BE 0.00%↑ 10P 10/18 Exp.
Vol: 6,042 OI: 443 Avg: $0.50 Prem: $302,747
Over 6k contracts were traded today in a chain with less than 500 OI and most of the volume at Ask. The put net premium was the highest in the past 30 days, as shown in the chart below.
Another case of trading below relative moving average’s and trending towards the downside. In current market conditions, this is a much easier trade to downside rather than attempting to catch the falling knives along the way anticipating a reversal. Yesterday’s session saw price action attempt a reclaim of the 10/20 moving average’s but ultimately failed to do so further confirming the downside action we see today.
In anticipating of tomorrow’s data, the major indices still trade below levels of support. Hopefully the data is good and helps the broader market reclaim these aforementioned levels such as 5550 & 5565 on SPX. As a result, the rest of the market should be smooth sailing but we can only wait and see. Thanks for checking us out and hope you all enjoyed today’s short read. As always, likes are greatly appreciated.
All the best,