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?
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?
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
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.
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?
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
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?
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?
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
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.
Sign up for the Options Trading Newsletter via email and receive a FREE 7-day Options Course.
Now go make some money!
THIS IS HOW THE TOP 1% TRADE OPTIONS
The Most Controversial Options Video
that the Experts Don't Want You to See!
Voted Top Presenter at the Benzinga Options Conference