Unusual Options Activity in OXY, JD and PLTR

September 15, 2021

UOA Trade Idea CCJ 090221

I’ve mentioned CCJ here before.

The stock and uranium have been en fuego.

In case you're behind on the story, here’s two articles that lay it out pretty good.

The thesis is HERE.  

And HERE’s the follow-up today.    

The squeeze you’ll read about looks interesting.

It’s structural and simple supply vs demand.

With that, let's get to today's trades...

Here's today's Options Flow...

UNUSUAL OPTIONS ACTIVITY

1. They’re Targeting a Big Move in THIS Oil Stock

2. Near-Term Bearish, Long-Term Bullish HERE?

3. Is THIS Stock About to Break Out?  

Let’s get started...


UNUSUAL OPTIONS ACTIVITY OXY

They’re Targeting a Big Move in THIS Oil Stock

OXY Unusual Options Activity 091521

With Oil trading higher after a big drawdown in Crude inventories, the whole energy complex is bid.

“U.S. crude oil stockpiles fell last week to the lowest since September 2019, the U.S. Energy Information Administration said, extending their drawdown after Hurricane Ida's hit late August shut numerous refineries and offshore drilling production.”

Remember in the CNBC video I showed you last week, Leon Cooperman said he was finding good plays in long energy and natural gas.

Take a look at OXY:

OXY Chart 091521

This $21.50 level seems to be the right spot on the downside, while the highs are near that $33 level.

OXY has recaptured the 50 and 200 dma, which is a positive sign.

The stock has come a long way from the depths of the pandemic where there was real talk about OXY possibly going to $0.

Unusual Options Activity in OXY is leaning on the Call side:

Unusual Options Activity  OXY 091521

Buyers are stepping in for the OXY November $31 Calls. 6k traded in the morning at ~$1.39. 

Notice that the RR$ is near $36. That’s quite a move!

Can OXY do it?

OXY is a major player in the oil industry.

They're swimming in profits with oil above $70.

Their issue is debt, and they have a lot of it. But that’s the leverage you get, which offers the opportunity here!


UNUSUAL OPTIONS ACTIVITY JD

Near-Term Bearish, Long-Term Bullish HERE?

JD Unusual Options Activity 091521

JD is a Cathie Wood favorite. A main competitor to BABA in China, JD also has an interesting healthcare business that people are looking at.

As with all these Chinese names the stock is all over the place.

JD Chart 091521

While JD has had a $22 point range in the last 4 months, it appears the big levels in the stock are $62, $70 and $80.

All looked good after the recent spike recaptured the 200dma.

However, this recent breakdown back through $80 has the Put buyers interested. 

Unusual Options Activity  JD 091521

The JD October Puts are active from $72.50 down to $62.50.

But, the options flow switches when you go further out in time.

I want you to go take a look at the JD January 2023 $85 Calls. There’s been a buyer there for the last 2 weeks. 11,000 more have traded today at around $13.50.

I suspect that they may also be getting out of some stock to adjust their risk-reward profile.

The RR$ on these long-term options is $127.50.

The Puts are targeting the low-$60s.

What do you think?


UNUSUAL OPTIONS ACTIVITY PLTR

Is THIS Stock About to Break Out?  

PLTR Unusual Options Activity 091521

They’ve been coming after PLTR for a while now.

And it appears that the moment of truth is close…

PLTR Chart 091521

It’s pretty easy to see.

$27.50 seems to be the line in the sand.

Call buyers have been in the name since early August.

They are back again today with a bit more urgency.

Unusual Options Activity  PLTR 091521

The weeklies and the October Calls are active, mainly in the $27 strike.

A breakout above $27.50 with volume could see a decent run to $30-$32 where that gap happened in mid-February.

We’re on the right-side of the “Momentum Mountain.”

So, is this the moment or just a mirage?

Sign up for the Options Trading Newsletter via email and receive a FREE 7-day Options Course.

Now go make some money!

Best,
Felix

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

Options Trading Tutorial - The Greeks Don't Matter

WHAT YOU MISSED

RECOMMENDED FOR YOU

DISCLAIMER
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options involve risks and are not suitable for everyone. Prior to buying or selling options, an investor must receive a copy of Characteristics and Risks of Standardized Options. Copies may be obtained by contacting your broker, The Options Industry Council at One North Wacker Drive, Chicago, IL 60606.

Felix Frey and OptionsGeek, LLC. are not registered as an investment adviser nor a broker/dealer with either the U.S. Securities and Exchange Commission or any state securities regulatory authority. All users of this Content and/or website must determine for themselves what specific investments to make or not to make and are urged to consult with their own independent financial advisors with respect to any investment decision. The viewer bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analysis and information included on this Content and website are based on sources believed to be reliable and written or produced in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, Felix Frey and OptionsGeek, LLC. undertake no responsibility to notify such opinions, analysis or information or to keep such opinions, analysis, or information current. Also be aware that owners, employees, writers, or producers of and for OptionsGeek, LLC. may have long or short positions in securities that may be discussed in this Content or website. Felix Frey and OptionsGeek, LLC.and the principals and/or employees of OptionsGeek, LLC. may hold securities of companies mentioned in this Content. Neither Felix Frey nor OptionsGeek, LLC. is receiving any compensation from any company referenced in the Content. Past results are not indicative of future profits.