Trouble in the Banking Sector?
Notable Flow 11/03
Happy Sunday folks!
Notable Flow:
DFS 0.00%↑ 145P 11/15 Exp.
COF 0.00%↑ 150P 12/20 Exp.
HUT 0.00%↑ 18C 01/17/2025 Exp.
RIOT 0.00%↑ 15C 03/21/2025 Exp.
DFS 0.00%↑ 145P 11/15 Exp.
Vol: 1,651 OI: 231 Avg: $6.57 Prem: $1,084,880
With an aggregate volume of 1.6k contracts traded and a total of 1.5k contracts traded at the Ask, this chain saw a huge spike in volume on Friday, which caused the net put premium to reach the highest levels in the past 30 days.
DFS Pending merger uncertainty: The ongoing investigation into Capital One's acquisition of Discover Financial Services by the New York Attorney General could create uncertainty around the deal. Any delays or complications in the merger process could negatively impact the stock price in the short term. A loss of support at 145 paired with election volatility could make this an exciting trade back in the previous range.
COF 0.00%↑ 150P 12/20 Exp.
Vol: 5,088 OI: 648 Avg: $3.96 Prem: $2,017,017
Another put flow in the financial services industry, this one cleaner than the previous one, with one big trade accounting for almost all of the daily volume. The trader opened 4k contracts at 11:30 am ET on Friday, paying almost $2 million for these puts, which are 8% OTM and expire in 47 days.
Somewhat of an ascending wedge here on the daily time frame pretty extended from the moving average’s at the moment. The ‘Slow Stochastic’ indicator suggests that COF may be in overbought territory, which could lead to a short-term pullback or consolidation period.
HUT 0.00%↑ 18C 01/17/2025 Exp.
Vol: 1,610 OI: 47 Avg: $3.15 Prem: $507,726
About 1.5k contracts were filled above the Ask on Friday for a chain with only 47 contracts in Open Interest, accounting for almost all the daily volume. This trader paid $480k for the whole trade, paying $3.19 on these contracts with an Ask price of less than $3.0 when the trade was placed. The Call net premium has seen bullish activity in the past week, with multiple chains having unusual activity.
The crypto theme is still very present as we wait impatiently for the Bitcoin breakout. Many of these miners have been getting pounded the last few weeks going into early next year. Resting upon the 10DMA, this trader looks to grab some exposure after a slight cool off move to end the week previous.
RIOT 0.00%↑ 15C 03/21/2025 Exp.
Vol: 26,424 OI: 8,617 Avg: $1.10 Prem: $2,902,384
This chain already had 8.6k contracts opened with a huge volume spike, with most contracts filled at the Ask. Riot Platforms reported its 2024 Q3 earnings on 10/30, missing analysts ’ expectations with an EPS of -$0.54 and revenues of $84.8 million. Despite these results, Whales saw an opportunity to add calls that are 60% OTM and have 138 days until expiration.
Moar crypto minooors. Similar idea. Largely viewed as a “Trump Trade” as well if he were to win the election, many believe that crypto would go vertical in the “Banana Zone”. Riot is one of the more popular names to own such as Mara in previous cycles. Yet as of late people have been turning heads to the likes of WULF, CORZ, IREN, BTBT, etc.
See you all in the morning!
Cheers,
Kian, Jersace, & Jon
C'mon, banana zone.