Unusual Options Activity in AMC stock, BP and SKX

October 14, 2021

Unusual Options Activity TSM WSJ  101421

We mentioned TIGR a couple weeks ago. Here's the news today.

China continues to destroy the stocks of most sectors in their economy.

They have destroyed confidence in their capital markets.

And they seemingly don’t care.

Is it because they’re about to do something much bigger that will destroy that confidence anyways?

What happens if the Chinese decide that they want to press harder here with the unification of Taiwan?

Taiwan Semiconductor makes more than 90% of the world’s most sophisticated semiconductor chips.

How does the U.S. respond?

What does the world look like then?

What do you think happens to inflation?

Inflation is great at first and pushes all assets higher.

At some point it becomes too much and everything crashes. 

People ask me $400 or $500 on the SPY in the next year.

I ask: “What odds do you give me that it’s both?”

UNUSUAL OPTIONS ACTIVITY

1. Call Buyers HERE After Putin’s $100 Oil Call 

2. Is THIS Sneaker Stock About to Change Direction?

3. When Will AMC Make Its Move?

Find your own ideas with the Unusual Options Activity Scanner

Let’s get started...


UNUSUAL OPTIONS ACTIVITY BP STOCK

Call Buyers HERE After Putin’s $100 Oil Call 

Unusual Options Activity BP 101421

Putin’s comments about $100 oil hit the airwaves yesterday causing oil stocks to rally. But nothing would be better for him than a stable and climbing oil price.

“Russia and our partners and OPEC+ group, I would say we are doing everything possible to make sure the oil market stabilizes. We are trying not to allow any shock peaks in prices. We certainly do not want to have that — it is not in our interests.”

It appears that OPEC has production in control. Maybe they know these are the last 5 years of peak oil production and want to squeeze every penny out of it?

Either way, the sector has been full steam ahead over the last 4 weeks.

Take a look at BP.

What Does the BP Stock Chart Say?

BP Chart - Options Activity 101421

BP stock broke through the $28 level in early October.

It’s up 20% in 4 weeks. 

The 50dma and the 200dma are trending up and looking higher.

While the stock looks strong, the bears would point to the lower volumes at these levels over the last few days.

Options Activity in BP Stock

Unusual Options Activity Scanner BP 101421

There’s some unusual options activity in BP January 21st 2022 $31 Call options. A buyer stepped in to buy 17,000 for up to $1.10.

Comparing the options volume vs open interest, these are an opening transaction.

The Risk-Reward is pointing to $34.40, which would make the Target Stock Price closer to $35. 

I am not sure if I’m buying the “leverage-right-now” message.

On the flip side, it’s a lot easier to believe that someone bought those and sold some long stock after a 20% move in 4 weeks. 

And those 8,000 puts you see there in the $25 line? 

Those were sold, which would indicate that they would be happy to get back in at $25.
What do you think?



UNUSUAL OPTIONS ACTIVITY SKX STOCK

Is THIS Sneaker Stock About to Change Direction?

Unusual Options Activity SKX 101421

The Sketchers story is under some pressure with the supply chain issues hitting retail. In addition, their growth relies a lot on international sales including a big percentage from China.

The chart clearly shows methodical selling in the name over the last 2 months. 

Take a look.

What Does the SKX Stock Chart Say?

SKX Chart - Options Activity 101421

From the $56 highs at the beginning of August, SKX stock has gone straight down.

On its way to $41, it briefly paused at the 50 and 200dma.

This bounce back toward the upper trend line and the 200dma should see some resistance.

The bears are in control here.

That said, the bulls are pointing at a double bounce here at $41, a low MACD indicating a washout with the RSI trying to fight back.

Maybe this is the turn?

The Options flow seems to think there is a good chance.

Options Activity in SKX Stock

Unusual Options Activity Scanner SKX 101421

There’s unusual options activity in SKX this morning. Someone stepped in to buy the SKX November 19th $49 -$55 Call Spread 10,000x for $0.70. 

Now, this isn’t a ringing endorsement by any means. It simply looks like a “flyer” that maybe the worst is behind them. 

Earnings are due in late-October.

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UNUSUAL OPTIONS ACTIVITY AMC STOCK

When Will AMC Make Its Move?

Unusual Options Activity AMC 101421

AMC stock has been fairly quiet recently. However, with every new day it appears that the stock is getting closer to that “next big” move.

Take a look at this gem.

What Does the AMC Stock Chart Say?

AMC Chart - Options Activity 101421

AMC has been digesting that monster move from $10 to $72.50.

As you can see from the charts, the volatility of the moves has declined significantly.

The story likely doesn’t end that way.

In a normal stock, a breakthrough the upper or lower trend line would draw demand or supply, respectively.

This assumes the owners of stock see this and decide to sell.

This isn’t your normal stock.

AMC holders don’t sell.

The shorts, on the other hand, do tend to cover.

Keep in mind, those 2 lines converge in mid-November.

That said, the October options have gotten busy again going into expiration.

Options Activity in AMC Stock

Unusual Options Activity Scanner AMC 101421

The AMC Call options are trading at almost 3x the Put options. There’s a heavy concentration in the October weeklies, especially the AMC October 15th $40 Calls, where more than 80,000 contracts have traded.

Implied volatility is up today but way off the highs seen several months ago. The options seem “cheaper,” but consider these trendlines are squeezing the range.

Since the mid-November expiration catches earnings and the converging trendlines, it seems like a better place to start building a position. While it costs a bit more, you get the catalysts.

Click here if you need more options trading picks with in-depth analysis.

Now go make some money!

Best,
Felix

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