Unusual Options Activity in SOFI, FUBO stock and FB

November 1, 2021

Unusual Options Activity Supply Chain 093021

There is a lot of talk about whether or not the supply chains will get back in order any time soon.

I showed you the above graphic before.

This weekend I found a very interesting article that fills in the details and offers a unique perspective.

It’s worth the read.

UNUSUAL OPTIONS ACTIVITY

1. The FUBO Sportsbook Entering a Hot Market

2. Fintechs are Picking Up Steam… Watch These 2

3.  Did Changing Its Name Work?

Let’s get started...


UNUSUAL OPTIONS ACTIVITY FUBO STOCK

The FUBO Sportsbook Entering a Hot Market

Even though DKNG decided to walk away from the $24Bn Entain bid, MGM is still circling around after bidding $11Bn earlier this year. With players like LVS still trying to get into the online sports gambling space, there is an underlying bid to ALL online sports gambling assets.

FUBO is making its entrance.

The Roth Capital Partners is positive on the stock, rating it a Buy and assigning it a price target of $45. 

 “Aftahi explained that the sooner Fubo’s sportsbook is launched, the better, as the fourth quarter typically involves seasonal increased holiday ad spending. Clues have begun to appear regarding the launch, with FUBO announcing partnerships with NASCAR, as well as teams within the NBA and NFL. A potential sportsbook and gaming segment has not yet been baked into Aftahi’s valuation projections and would only act as a bonus.“

The chart seems to agree.

What Does the FUBO Stock Chart Say?

FUBO Chart - Options Activity 110121

FUBO stock is making its way to the higher barrier of this 6-month long range.

Volume is average but the stock held for 2 weeks hovering above the 50 and 200dma.

Today’s move feels like an extension from early October, that points to $36. However, a breakout through $34 may give it more legs.

The bears will likely lean against $34 until FUBO proves it wants to go above that level.

Options Activity in FUBO Stock

Unusual Options Activity Scanner FUBO 110121

There’s unusual options activity in FUBO today. Buyers have come into the weekly $33 and $35 Calls, which have traded over 20,000 times.

The Risk-Reward Breakeven Price ranges from $35.70 to $37.32. This is right in-line with what the charts are saying.

Earnings are on November 9th.  


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UNUSUAL OPTIONS ACTIVITY SOFI STOCK

Fintechs are Picking Up Steam… Watch These 2

Unusual Options Activity SOFI 101121

They love these fintechs.

We saw LC last week. Now, SOFI is humming along today.

Remember that we saw them buying Calls three weeks ago near $16-18. They were buying the $20 Calls with a Risk-Reward Breakeven Price of $23.60, which implies a Target Stock Price close to $25.

What Does the SOFI Stock Chart Say?

SOFI Chart - Options Activity 110121

$25 in SOFI stock gets us right to the June high.

There is an ABCD pattern developing that also gets you to $25.

The stock continues to trade on good volumes above the 50 and 200dma.

Bears are looking for a turn of some sorts, but right now that feels like a prayer.

Bulls keep using options to push for further upside.

Options Activity in SOFI Stock

Unusual Options Activity Scanner SOFI 110121

The Call option flows are significant in SOFI. While there is a lot going on in the weekly options, the SOFI January $30 Calls caught my eye. More than 20,000 traded for around $0.85. The Risk-Reward Breakeven Price is pointing at $36.29. Wow!

Earnings are due next week on November 10th.

You might want to look at RKT and this announcement, which has been glossed over. They just created a new industry … Mortgage-as-a-Service (MAAS).

Is RKT a mortgage company or a fintech?

If you say “Fintech”, then the difference is probably $20 in the stock, or close to $40. I suspect management made that announcement last week so they can keep pitching Wall Street on a Fintech valuation when they announce earnings this week.


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UNUSUAL OPTIONS ACTIVITY FB STOCK

Did Changing Its Name Work?

Unusual Options Activity FB 092221

FB changed their name last week to Meta in order to bolster their image.

So far, so good.

The stock is up, but how long will it last?

This Metaverse project will take tens of billions of dollars over the next several years without much revenue. That means costs will go way up and squeeze margins.

We will have to wait and see how Wall Street handles that.

In the meantime, I think FB may hit a wall.

What Does the FB Stock Chart Say?

FB Chart - Options Activity 110121

FB stock has created a bullish MACD diversion recently. This last lower price dip coincided with a higher MACD.

The stock has also recouped the 200dma, now heading toward a downward trending 50dma.

Volume has been significant in the last 2 weeks.

I still stand by my observation last week… The stock has to digest the damage done over the last 2 months.

On the flip side, the options market has different plans.

Options Activity in FB Stock

Unusual Options Activity Scanner FB 110121

Call buying across the front 3 months has picked up today, especially in December upside. With the stock up $25 from the lows a few days ago, the FB December 17th $330 to $340 Calls seem more like risk-reward adjustments.

The Risk-Reward Breakeven Prices range from $362 to $369. This is a little higher than I am comfortable with.

I really believe in the Metaverse, but I also think it will take some time. In Winning Picks Premium, we are long a Metaverse play that is a little farther along in the vision.

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Now go make some money!

Best,
Felix

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