Weekend Bags - No Designer

Good Morning!

We wanted to give you guys something to read while you enjoy your morning coffee. So here’s a quick blurb over some things we pulled over the weekend.

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Notable Flow:

• OXY 0.00%↑ 50C 11/15 Exp

• TSLA 0.00%↑ 290C 10/25 Exp

• GILD 0.00%↑ 90C 11/15 Exp

• NOVA 0.00%↑ 16C 01/17/2025 Exp

• RKLB 0.00%↑ 17C 04/17/2025 Exp

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OXY 0.00%↑ 50C 11/15 Exp.

Vol: 14,285 OI: 3,632 Avg: $3.21 Prem: $4,580,771

These ITM calls saw unusual activity in the last hour of trading on 09/27. Over 14k contracts were traded, and 10.9k contracts were traded at the Ask, causing a huge spike in the Net Call Premium. The stock has been plunging following Oil prices, but these Whales are betting that this is a good spot for a bounce, at least in the short term.

A popular trade when it’s near or in this instance, below, the “Buffet Zone” is OXY 0.00%↑. Essentially risking the 200-week, it offers good risk to reward hence the in-the-money calls purchased for 11/15.

TSLA 0.00%↑ 290C 10/25 Exp.

Vol: 2,041 OI: 538 Avg: $11.22 Prem: $2,289,246

At around 2:30 p.m. ET on Friday, 09/27, this 5% OTM chain started to see unusual activity, with Volume exceeding OI. Over 2k contracts were traded in the last 2 hours of the market, with a total of 1.7k contracts at the Ask. The Net Premium chart shows a big spike in calls, which traded negative during most of the Friday session but turned positive towards the end of the day.

We previously noted the weekly downtrend which has now broken above as this whale looks to capitalize with a relatively quick-hit expiration as it closed the previous week with strength. You can find that letter below.

GILD 0.00%↑ 90C 11/15 Exp.

Vol: 11,317 OI: 1,620 Avg: $1.27 Prem: $1,431,917

These whales traded about 10k contracts at the Ask in this chain, paying almost $1.3 million for the trade. Additionally, the 86C 10/18 Exp. had some unusual activity later, with 1.5k contracts treaded at the Ask, with the Whales paying over $130k. The Call Net Premium reached its highest levels in the past 30 days.

The company announced on 09/12 its Phase 3 results for its HIV Prevention drug Lenacapavir, showing that it reduced HIV infections by 96%.

Daily chart shows us a bull pennant with support from a gap up on 9/12. Pharmaceutical bet so can be looked as potential upcoming news trade or even catalyst such as an earnings report. Gilead reports their earnings November 7th.

NOVA 0.00%↑ 16C 01/17/25 Exp.

Vol: 4,692 OI: 176 Avg: $0.91 Prem: $426,827

These Whales are opening calls 54% OTM with 109 DTEs. On Friday almost 4k contracts were traded at the Ask, and about 700 were traded at the Bid. The stock had its highest options volume in the past 14 days.

Weekly chart displays a cup + handle possibly in the early stages of forming. Solar names have been heating up again. I won’t make too many more puns I apologize. ($NOVA) is a Houston-based solar energy company that provides residential solar and energy storage services. The company is focused on delivering renewable energy solutions primarily in the United States and Puerto Rico. As the solar industry catches momentum yet again heading into election season, we could be setting up for another run. Also worth mentioning that NOVA has their earnings report in 24 days.

RKLB 0.00%↑ 17C 04/17/2025 Exp.

Vol: 11,051 OI: - Avg: $0.93 Prem: $1,026,861

The stock rallied 44% last week after receiving good news. On Friday, 09/20, the company won a $15 million Air Force contract and successfully launched its 53rd Electron Mission. On 09/26, the company completed its second spacecraft for Varda Space Industries. All this news fueled the stock rally, but these Whales did not believe that the upside was over, adding calls that were 74% OTM with 199 DTEs in a chain that had no previous OI.

We had noted some leaps on this name previously back in mid-August which have been very successful to date. You can find that article here. I pulled the monthly chart this time around just to show how coiled and large of a base that Rocket Labs has had before this breakout with a ton of strength. You can see that the previous risk/reward ratio shown from our first writeup is nearly complete after a month of time and faces a major pivot level upcoming at ~12. The moving average’s are supportive on all relative time frames.

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Alright folks, that covers everything on our end. Let’s start the week off hot shall we? If you enjoyed the read, likes are greatly appreciated and we’ll see you guys this afternoon. Let us know if you enjoyed the Monday morning post rather than Sunday evening!

Cheers,

Kian, Jersace, & Jon

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