CRM, Boom!
One for the good guys today.
We talked about the UOA in CRM last week ahead of the earnings.
If you want to hear a good CEO speak…
Do yourself a favor and listen to the CRM earnings call. Salesforce CEO Marc Benioff is as good as it gets when it comes to telling a great story.
He reminds me of another genius storyteller … Oracle CEO Larry Ellison.
UNUSUAL OPTIONS ACTIVITY
1. Need Crypto Exposure? THIS Stock is HOT!
2. Call Buying in THIS Bank ... Why Next week?
3. Vultures Begin to Feast on THIS Stock
Let’s get started...
UNUSUAL OPTIONS ACTIVITY SPRT
Need Crypto Exposure? THIS Stock is HOT!
Support.com (SPRT) provides technical support services and cloud-based software. That’s easy enough to understand and the description has the right buzzwords to get some momentum.
Now add in the fact that Greenidge Generation Holdings, the first bitcoin mining company with a wholly owned power plant, is buying them (I didn’t see that coming)??? … And it becomes explosive!
September 10th is the date that the shareholders will vote on the deal.
The chart should seem familiar and bring back some memories of years months past…
SPRT is one of those names on the left side of our “Momentum Mountain.”
We’ve been through this before.
So, if you’re thinking about shorting it, be careful. There is no set top in place just yet, which makes it that much riskier.
And the “Squeeze” set-up I’ve talked about is in full motion.
Unusual Options Activity in SPRT is concentrated in September for that shareholder meeting.
The September $30 Calls have traded 8,000x for as much as $1.90 and continue to trade above 300% IV. The Open Interest is 0 so we know that these are opening trades.
Look at that RR$... $46.34!!! Craziness.
Can it happen?
Of course.
But if you like the name, maybe the September $16-30 Call Spread at $1.70 gives you better value.
Unless, of course, it’s going to $50.
P.S. It’s interesting to see the $15 Puts are $5. Just as much a “Wow!” from me. But who’s looking at puts anyways.
Have fun looking at this one!
UNUSUAL OPTIONS ACTIVITY JPM
Call Buying in THIS Bank ... Why Next week?
Banks had a tough July but are in the midst of a nice comeback.
For the next year, they will live and die by the Treasury yield curve. Long-term, how they fight back (or just buy) against the fintech surge will shape their futures.
This JPM chart looks healthy…
JPM is doing what a good stock is supposed to do – hold the line!
The stock price is within a clear range, digesting a huge move.
And maybe it's about to make another big move?
I'm seeing Unusual Options Activity in JPM this morning as it sneaks back up toward that breakout range near $167.
The next week JPM $165 calls were bought 6,000x this morning. This means those buyers are looking for a ~$170 target.
Interestingly enough, there is activity in tomorrow’s $165s as well.
The thinking is likely that inflation is here, and the Fed will taper their monthly bond purchases. This would increase long-term interest rates a bit.
But don’t worry, they have it all under control and will leave the near-term maturities low until they feel the employment environment is ok (which I’ve told you months ago that it will likely never be enough for them).
Net-net, you get a steeper yield curve and net interest margin expanding, which is nirvana for the banks.
UNUSUAL OPTIONS ACTIVITY RIDE
Vultures Begin to Feast on THIS Stock
Lordstown Motors (RIDE) is under a lot of pressure these days from shareholders, lawyers, and the SEC.
But there is some good news today. They named Daniel Ninivaggi, an auto industry executive and former Icahn executive, as CEO. He’s certainly the real deal:
Ninivaggi is the former CEO of Icahn Enterprises (IEP) and has served in a “variety of senior leadership positions in the automotive and transportation industries,” according to the company. His previous automotive jobs include stints at parts suppliers Lear (LEA) and Federal-Mogul. He also serves on the board of Garrett Motion (GTX), the turbocharger business spun out of Honeywell International (HON).
And this should come as a surprise… to no one.
First, take a look at the chart…
Left side of “The Mountain.”
Then 3 peaks, which is unusual.
And finally, the Right Side of the mountain.
Then today… the Call Options Volume has taken off.
Today’s news is attracting front-month Call Buying. They jumped on over 25k calls expiring tomorrow. It’s aggressive, but crazier things have happened.
If you like the name, I think this takes a bit more time to develop.
More importantly, I am showing you this to highlight a bigger picture…
Remember, I told you that 90% of these “crazy” stocks will see $10 or below before it’s all over?
I stand by that.
What we’ll be left with is a graveyard of “Remember that stock…” stories. However, within that graveyard are a few that will rise from the ashes and become huge winners. A SELECT FEW!!!
That certainly won’t happen before the “vultures” get in.
In the 1980’s, Carl Icahn was a “Corporate Raider,” aka a “Vulture.”
Today, we call him a “Corporate Activist.”
I like “Vulture.”
Vultures hang out with other vultures.
This new CEO is a vulture.
Now go make some money!
Best,
Felix
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