Unusual Options Activity in MGM, BEKE stock and WPM

October 5, 2021

SPY Chart - Options Activity 100521

That’s the SPY over the last month.

You know what that chart is saying?

That’s the market shaking people out, so it can make its grand move.

And while everyone is trying to figure out that next big move, another equally important chart might give you clues.

I mentioned the TLT last week. TLT = Bonds.

Go look at that chart. I think it’s important. 

UNUSUAL OPTIONS ACTIVITY

1. Can Silver Lift THIS Stock?

2. Call Buying in THIS Chinese Real Estate Stock… Really.

3. Does THIS Sports Betting Drama Create Opportunity?

Let’s get started...


UNUSUAL OPTIONS ACTIVITY WPM STOCK

Can Silver Lift THIS Stock?

Unusual Options Activity WPM 100521

Silver has been hit hard over the last few months down 25% since June. However, the Silver ETF (SLV) jumped 4% over the last week. 

Wheaton Precious Metals (WPM) produces silver and like the commodity, it has gotten crushed lately. 

What Does the WPM Stock Chart Say?

WPM Chart - Options Activity 100521

After breaking that $42 level the stock has not found a floor.

Today, the March-April lows seem to be giving it some support.

Combine that with the price action in SLV and some unusual options activity popped up in the name today.

Options Activity in WPM Stock

Unusual Options Activity Scanner WPM 100521

There was a buyer of 10,000 WPM December 17th $40 Calls for $1.15.

By comparing the options volume vs the open interest, we can tell this was an opening transaction. 

The Risk Reward Breakeven Price is $44.47, which would get us back near the August -September highs.

Someone thinks silver is about to make a comeback… What do you think?

And what does that say about gold?



UNUSUAL OPTIONS ACTIVITY BEKE STOCK

Call Buying in THIS Chinese Real Estate Stock… Really.

Unusual Options Activity BEKE 100521

BEKE is the largest real estate platform in China.

With the collapse of Evergrande, China looking to have its population deleverage, and investor sentiment toward Chinese stocks, the chart looks as good as you would imagine it to look.

What Does the BEKE Stock Chart Say?

BEKE Chart - Options Activity 100521

It’s a disaster… from $37 to $80 to $17.

To make matters worse, it’s forming a bear flag here in the teens with very good volume.

The MACD continues to rise, and BEKE stock is standing still.

The only good news (and I am reaching) is that the 50dma is getting close enough where the stock might be able to recapture that on the upside. 

If it does, perhaps we see a move toward $22.50.

Options Activity in BEKE Stock

Unusual Options Activity Scanner BEKE 100521

Interesting enough the BEKE October 15th $20 Calls were hot out of the gate. Buyers stepped in and bought 14k calls for about $0.50.

Notice the Risk-Reward Breakeven Price is at $22.27, which matches the potential seen in the chart. 

Earnings are not until mid-November. 

If you think our government lawmakers trades on “insider” knowledge, what do you think happens in China?



UNUSUAL OPTIONS ACTIVITY MGM STOCK

Does THIS Sports Betting Drama Create Opportunity?

MGM is in a battle with our good friends over at DKNG. The CEO was on CNBC making some comments today at the Global Gaming Expo.

Recently, DKNG made an eye-popping $22Bn bid for Entain. 

This doubles the bid MGM made for Entain back in January.

Entain owns half of BetMGM. 

BetMGM are in a joint venture together.

You with me?

Good, because I still can’t wrap my head around DKNG coming up with $22Bn to bid for Entain!?!? 

Regardless, MGM stock chart looks very good.

What Does the MGM Stock Chart Say?

MGM Chart - Options Activity 100521

After breaking through the $34 resistance from the 2020 high, MGM has traded in a range between $36 and $46. This looks like normal consolidation of the huge move from the Covid lows

The stock looks good as it trades near the highs. Both the 50 and 200 dma are trending higher.

Options Activity in MGM Stock

Unusual Options Activity Scanner MGM 100521

There is unusual options activity in MGM today in the weeklies and with an earnings play.

Investors were getting ahead of this conference and bought the MGM October 8th $45 and $46 Calls over the last few days. With no news, they are selling those today.

But they aren’t giving up.

A buyer stepped in to grab 8,000 MGM October 29th $47 Calls for approximately $1.50.

Earnings are expected to be announced that week.

Also, from the video, the CEO mentioned October 19th as the “shut up or put up” date for the DKNG-Entain saga.

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Best,
Felix

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