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
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:
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:
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 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.
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.
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?
They’ve been coming after PLTR for a while now.
And it appears that the moment of truth is close…
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.
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?
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Best,
Felix
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