X, PLUG, SNAP Unusual Options Activity

August 10, 2021

Shawshank Redemption

“The Shawshank Redemption” is one of my all-time favorite movies. If you’ve never seen it, I suggest you do. One of my favorite quotes from the movie is from the character Ellis Boy "Red" Redding:  

“Geology is the study of pressure and time. That's all it really takes, pressure and time.”

You could look at investing in a similar way... 

Find undervalued stocks with building “pressure” of growing revenues and earnings. Then allow “time” to pass in order for Wall Street to recognize the “gem.”

That's all it really takes, pressure and time.

UNUSUAL OPTIONS ACTIVITY

1. This Sector is Exploding Higher, What’s Next?

2. This is now a NEW Stock… Pay Attention!

3. This Stock Will Change the World… Maybe.

Let’s get started...


UNUSUAL OPTIONS ACTIVITY X

This Sector is Exploding Higher, What’s Next?

Speaker Pelosi

Good news on the infrastructure deal has the Steel names making their move to the outside. We’re in CLF, but NUE, STLD, and X are all humming. I like the X activity I’m seeing in September:

X Unusual Options Activity 081021

There’s a lot of excitement today, which brings buyers into the front month. However, I think this all needs a bit of time. Also, X is coming up against some good resistance up here:

X Stock Chart 081021

But here’s what I’m focusing on:

“House Speaker Nancy Pelosi, D-Calif., has stressed she will not take up the infrastructure bill or Democrats’ separate proposal to expand the social safety net until the Senate passes both of them. The House does not return from recess until Sept. 20.”

>>> Click to see the full article on the Infrastructure Deal

The Speaker of the House has been adamant that she wants to see both bills AT THE SAME TIME. I don’t think she reverses course so fast. This is Chess, not checkers! I suspect the Democrats position themselves and the much larger $3.5 Trillion Bill as “for the people” while pressuring the Republicans on camera to pass both. I don’t think that has more than a 5% chance (and I am being generous). 

The ball is now firmly in Pelosi’s court. So, her statement is likely coming soon. 

Will she bluff?


UNUSUAL OPTIONS ACTIVITY SNAP

This is now a NEW Stock… Pay Attention!

SNAP Logo

Long time members of Winning Picks Premium know I love SNAP. I also love TWTR & PINS, although PINS let me down a couple weeks ago. 

Take a look at this chart… 

SNAP Stock Chart 081021

I look at that gap up on huge volume and call it a “new” stock. That $72.50 level is now support. You can trade against that.

SNAP Unusual Options Activity 081021

It’s then interesting to see them come for the SNAP September 3rd $82 Calls. Great volume and look at that RR$... $89! You gotta like that. 

But the question is why September 3rd???


UNUSUAL OPTIONS ACTIVITY PLUG

This Stock Will Change the World… Maybe.

PLUG CEO with Cramer

Hmmm … PLUG is a stock I love to hate. Anything that forces me to be all-in on a “story” makes me pause. Hydrogen stocks are still part of a larger story that we should see results in 2025, 2030, and even 2050, depending on the extent of those results. This is a “change the world” stock with a lot of potential but also many hurdles.

Here’s an interview with the CEO that aired yesterday.

Then look at the chart:

PLUG Stock Chart 081021

We are on the right side of “The Mountain,” which generally means we need to be careful. The fast and easy money may have been made already. We are firmly here between $18 and $36, and underneath the 50dma and 200dma. 

The positive news from the Infrastructure Bill has investors running for some leverage this morning:

PLUG Unusual Options Activity 081021

Besides all the August Calls, I will keep an eye on these September Calls that were bought today.

Now go make some money!

Best,
Felix

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