The Cathie Woods Revenge ARKK
Notable Flow 11/11
11/11 Make a wish. Seemingly, a consolidation day in the indices will see individual names surge upwards in many thematic sectors. If you are positioned appropriately, today is a great day (yes, you could say this about any day). Let’s take a look at some new things that we noticed today.
Notable Flow:
JOBY 0.00%↑ 10C 04/17/2025 Exp
SCHW 0.00%↑ 95C 03/21/2025 Exp
SNAP 0.00%↑ 18C 05/16/2025 Exp
ARKK 0.00%↑ 64C 12/20 Exp
JOBY 0.00%↑ 10C 04/17/2025 Exp
Vol: 12,474 OI: 1,473 Avg: $0.32 Prem: $403,412
Despite today's 16% rally, these whales did not hesitate to add over 10k contracts for this chain, which is 65% OTM and expires in 157 days. The stock had its highest options volume in the past 14 days, with the net premium favoring calls.
This is an interesting trade for many reasons. One is that we have noticed the “hit rate” of max strike calls in recent sessions being very accurate. A few examples, but not limited to, are APP APO AFRM. All of these had crazy runs on a random day and paid exceptionally well. We are seeing this call buying for April next year, where 10 is the max strike for that chain.
Four months after President-Elect Donald Trump announced his candidacy, he had this to say about EVTOL:
A significant policy statement by the incoming presidential administration has been a commitment to accelerate the certification and adoption of Electric Vertical Aircraft (“EVA” or “eVTOL”) in the U.S. We look forward to the potential of accelerating our timeline to transform our accessible fleet of helicopters to EVA using a rapid, but prudent, process.
That is a pretty bullish statement for companies such as JOBY and BLDE.
The chart itself is a great look, too. Pushing up against a downtrend from last Summer, nearing a break of this and the top of the range at ~7.15, the upside could trigger quickly. Plenty of time behind the trade, and a new theme arising in the stock market presents a good opportunity.
SCHW 0.00%↑ 95C 03/21/2025 Exp
Vol: 5,241 OI: 66 Avg: $0.81 Prem: $425,730
With an aggregate volume of almost 5.5k contracts and 4.9k contracts traded at the Ask. Whales are opening a bullish position in this chain with almost no previous OI. If our assumption is right, OI should update it to above 5k tomorrow.
Charles Schwab shares rallied over 4% today after Deutsche Bank increased their price target to $80 from $77.
Ahh yes. The ex-girlfriend of trading platforms. Banks have been getting pounded leading up to the election and remain to be pounded further this week. Get your heads out of the gutter. A good look at the chart shows a downtrend from all-time highs and above significant resistance levels of 70 & 75, respectively. There is a good bit of air above the trendline with supportive moving averages suggesting this move could be relatively easy, assuming market conditions were cooperating.
I also see the potential for a Golden Cross for my technical bros out there. On the weekly time frame, the 50-week MA is very close to surpassing the 200-week MA. It's a similar story on the daily time frame, yet there is a little more separation between the two respective averages.
SNAP 0.00%↑ 18C 05/16/2025 Exp
Vol: 3,188 OI: 10 Avg: $0.79 Prem: $252,192
Another example of a Whale expecting the upside move to continue is that the stock rallied over 20% last week after the company announced its 2024 Q3 earnings, beating analysts’ expectations with an EPS of - $0.09 and revenues of $1.373 billion. With only 10 contracts in OI, this chain had over 3k contracts traded at the Ask today and should mostly stick to the updated OI tomorrow morning.
Snapchat! I am sure you are familiar with the application, as it has become very popular since its inception. Unfortunately, the stock is not so much. However, we see some flow on this particular strike correlating to the top of this multi-year range. The asset has been trading in a stage-one base for quite some time now, and the popular saying “the longer the base, the higher in space” remains to be seen in this name. Key levels of note here for upside: 13.50, 18.00, 25.00. Yes I included the strike because it is a notable level, leave me alone.
ARKK 0.00%↑ 64C 12/20 Exp
Vol: 30,498 OI: 266 Avg: $1.06 Prem: $3,244,553
With an aggregate volume of over 30k and 23k contracts traded at the Ask. These whales are optimistic and expect the 5% gains in the shares today to hold and have even more upside. There were almost 6k contracts traded at the Bid afterward, which could be some profit-taking; we will have to double-check OI tomorrow to see how much out of the 30k contracts are being held.
Good old Cathie! Quite the investor she is, eh? The chart looks good, as it has broken out of a base dating back to June 2022 and is nearing the 60 handle. is likely being hit due to the surge in recent months, being the ETF’s largest holding. I have pulled the most recent weighted holdings for Cathie’s ETF and displayed them below.
This basket has performed exceptionally well the past few sessions and will likely continue to do so. Is this the Cathie Woods Revenge ARKK? Get it? Okay, I’ll stop.
Honestly, it's one of my favorite write-ups we have done so far. I enjoy these ideas and feel like there is a great opportunity here. Anyway, enough about me, how are you doing? Let us know in the comments below if you have enjoyed these articles thus far or if there is anything else you’d like to see from us. As always, likes are greatly appreciated.
Best Regards,
Kian, Jersace, & Jon