Unusual Option Activity for Oct-22-2020 SONO, JKS, HEAR

Daily Synopsis -

  • The S&P 500 eked out a gain of +0.55% today while the NASDaq decreased by (-0.03%). The Russell 2000 rose by (+1.73%). The Dow ended in positive territory at (+0.6%)
  • The best performing sector was Energy(+4.12%) while Real Estate(-0.7%)was the worst performer.
  • The health care (+1.5%) and utilities (+1.5%) sectors followed suit, but losses in the information technology (-0.5%), real estate (-0.8%), and consumer staples (-0.2%) sectors limited the rebound effort.
  • Interestingly, even before Ms. Pelosi’s comments, the 10-yr yield was trending higher for the sixth straight day on burgeoning inflation expectations resulting from a large stimulus package. The upwards trajectory in rates was cited as a drag on highly-valued growth stocks, which had benefited from persistently low rates.
  • The 10-yr yield finished the session higher by three basis points to 0.85%. The 2-yr yield remained unchanged at 0.15% due to the Fed’s stance of keeping the fed funds rate near zero for the next few years. The U.S. Dollar Index advanced 0.4% to 92.95. WTI crude futures rose 1.6%, or $0.62, to $40.65/bbl.
  • Highlighting some of today’s earnings movers, Tesla (TSLA 425.79, +3.15, +0.8%), Coca-Cola (KO 50.68, +0.69, +1.4%), AT&T (T 28.29, +1.57, +5.9%), CSX (CSX 81.73, +3.01, +3.8%), and Dow Inc. (DOW 48.82, +0.27, +0.6%) closed higher following their results. Union Pacific (UNP 187.14, -12.34, -6.2%), however, was a notable earnings laggard.

Index Summary -

S&P 500 : (+0.55%); NasDaq : (-0.03%);
Russell 2000 :(+1.73%); Dow :(+0.6%);
Vix :28.65 (-1.88%); [+4.23%]; {+12.44%}

Sector Summary -

Three highest sectors for today were –
Energy: (+4.12%); Financials: (+1.98%); Health Care: (+1.51%)
Three lowest sectors for today were –
Real Estate: (-0.7%); Information Technology: (-0.47%); Consumer Staples: (-0.05%)

Commodities/Futures -

(1-day %), [5-day %], {10-day %}

Currency –
USD Index :92.599 (+0.38%); [-0.51%]; {-0.63%}
BC :12755 (+3.49%); [+12.29%]; {+15.38%}

Precious Metals –
Gold :1929.5 (-1.17%); [+0.03%]; {+0.97%}
Silver :25.241 (-1.71%); [+0.62%]; {+3.01%}

Farming –
Soybeans :1072 (-0.07%); [+1.61%]; {+2.61%}
Corn :413.75 (+0.48%); [+2.59%]; {+6.26%}
Coffee :104.15 (+2.3%); [+0.47%]; {-3.22%}

Industrials –
Crude :40.03 (+1.57%); [-0.42%]; {+1.14%}
Nat Gas :3.023 (-1.12%); [+6.94%]; {+4.69%}
Copper :3.1985 (-1.25%); [+2.52%]; {+3.81%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (-0.39%)
Top 5 Highest SPAC % Changes –
1. NOVS- 11.3 0.29 (+2.63%); 52 week high :12.99
2. TZAC- 10.84 0.14 (+1.31%); 52 week high :13.0
3. FEAC- 12.74 0.14 (+1.11%); 52 week high :14.7
4. HCAC- 10.45 0.1 (+0.97%); 52 week high :13.5
5. TRNE- 10.95 0.1 (+0.92%); 52 week high :12.99
Top 5 Lowest SPAC % Changes –
1. IPOB- 19.73 -2.19 (-9.99%); 52 week high :27.0
2. KBLM- 8.02 -0.76 (-8.66%); 52 week high :11.5
3. SPAQ- 11.21 -1.06 (-8.64%); 52 week high :21.6
4. DPHC- 20.42 -1.0 (-4.67%); 52 week high :31.8
5. DMYT- 12.5 -0.48 (-3.7%); 52 week high :14.38
Top 5 Spacs by Volume –

1. ACAM- 10.185 -0.035 (-0.34%); Volume :10,275,036; ADV:72,649
2. SPAQ- 11.21 -1.06 (-8.64%); Volume :9,559,530; ADV:7,592,260
3. IPOC- 10.15 -0.07 (-0.69%); Volume :6,334,731; ADV:3,359,615
4. HCCO- 10.04 0.01 (+0.1%); Volume :4,793,709; ADV:430,919
5. IPOB- 19.73 -2.19 (-9.99%); Volume :3,070,993; ADV:5,649,902
Top 5 Spacs Trading Above ADV –

1. LOAC- 10.655 -0.025 (-0.23%); ADV:390: Multiple of ADV:216.26
2. ACAM- 10.185 -0.035 (-0.34%); ADV:72,649: Multiple of ADV:141.43
3. HCCO- 10.04 0.01 (+0.1%); ADV:430,919: Multiple of ADV:11.12
4. THBR- 10.18 0.0 (0.0%); ADV:122,615: Multiple of ADV:10.13
5. ARYB- 10.12 0.04 (+0.4%); ADV:122,789: Multiple of ADV:7.98

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. MSFT 2 buys totaling 1,150,000 shares. Average Price : 214.95, Cost : $247,244,250
2. FB 2 buys totaling 838,600 shares. Average Price : 279.04, Cost : $234,017,525
3.ORCL 1 buys totaling 3,000,000 shares. Average Price : 59.77, Cost : $179,310,000
4.TSLA 1 buys totaling 243,600 shares. Average Price : 427.0, Cost : $104,017,200
5. COF 2 buys totaling 1,313,330 shares. Average Price : 75.95, Cost : $99,343,693

Options Fast Facts -

CBOE Put/Call Ratio – 0.50
Highest Multiple Over Daily Average – ALGN with 17x the ADV of 1433. There were 12051 calls and 12388 puts.
Ticker with Most Contracts –SNAP with 617606 contracts traded today with an AVD of 199618. There were 326941 calls and 290665 puts.
Largest Put / Call Ratio – APA with a 20 P/C ratio. There were 192207puts and 9388 calls.
Largest Call / Put Ratio – OUT with a579 C/P ratio. There were 13891 calls and 24 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

HLT 94.39 +5.42,(+6.09%)
IYR 80.52 -0.1,(-0.12%)
PYPL 203.87 -9.2,(-4.32%)
NCLH 17.71 +0.72,(+4.24%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:SONO 15.79,1.09(+7.41%) Earnings: 2020-11-12

Name :Sonos, Inc. Special Considerations :

Industry : Electronic Technology Sector : Electronic Production Equipment
Option Information –

Today’s Option Volume: 66851; OptionOI: 84975

Multiple of ADV: 11; ADV: 6357

Total Calls: 64416; Total Puts: 2435

Calls at Ask: 50.4%; Calls at Bid: 29.5%

Puts at Ask: 26.5%; Puts at Bid: 45.0%

C/P Ratio: 26

Noteable Strikes

NOV 20 ’20 15.0C had 3126 VLM and 3415 OI.
NOV 20 ’20 17.5C had 6897.0 VLM and 5985 OI.
DEC 18 ’20 17.5C had 43239 VLM and 1333 OI.
JAN 15 ’21 17.5C had 2429 VLM and 1539 OI.

News

2020-10-22 13:00:57:Jon Najarian Sees Unusual Options Activity In Sonos And Sabre

Jon Najarian on CNBC’s “Fast Money: Halftime Report” discusses unusual options activity in Sonos, Inc. (NASDAQ: SONO ) and Sabre Corporation (NASDAQ: SABR ). Sonos: Najarian notes there … Full story available on Benzinga.com

2020-10-22 09:00:00:Amazon Echo (4th Gen) review: The more things change, the more they stay the same

Amazon still has the best speaker for smart home control, but it still trails Sonos and Google in musicality.

Potential Sympathy Stocks

ROFO, SGOC, PLT, KOSS

Impression

The Call Ask Percent is high. The Multiple of ADV appears quite bullish. Very high C/P Ratio.

Company Description for :SONO

Sonos, Inc. provides multi-room wireless smart home sound systems. It supports streaming services around the world, providing customers with access to music, Internet radio, podcasts, and audiobooks, with control from Android smartphones, iPhone, or iPad. The company was founded by Mai Trung, John MacFarlane, Craig A. Shelburne and Thomas S. Cullen in 2002 and is headquartered in Santa Barbara, CA.

Second Momentum Stock Pick

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:JKS 69.37,0.76(+1.11%) Earnings: 2020-11-18

Name :JinkoSolar Holding Co., Ltd.

Industry : Electrical Products

Option Information –

NOV’20 20 90.0C – 2,465 @ 2.05 were traded at 10:46:00 as a SWEEP Spot Price: 62.43

News –

No news for today

Sympathy Stocks for : JKS

SOL, CSIQ, DQ

Company Description for :JKS

(‘JKS’, ‘JinkoSolar Holding Co., Ltd. engages in the design, development, production and marketing of photovoltaic products, and solar system integration services. It focuses on vertically integrated solar power products manufacturing business from silicon ingots, wafers, and cells to solar modules. The company was founded by Xiande Li, Kangping Chen, and Xianhua Li on August 3, 2007 and is headquartered in Shangrao, China.’)

Second Classic Unusual Options Activity Pick -

Ticker:HEAR 18.755,0.775(+4.31%) Earnings: 2020-11-05

Name :Turtle Beach Corp.

Industry : Electronics/Appliances

Option Information –

NOV’20 20 22.0C – 1,994 @ 0.78 were traded at 15:20:00 as a SPLIT Spot Price: 18.46

News –
No news for today

Sympathy Stocks for : HEAR

SNE, PLT, DAKT, LOGI

Company Description for :HEAR

(‘HEAR’, ‘Turtle Beach Corp. engages in the development, commercialization, and marketing of audio peripherals. The company was founded by Elwood G. Norris and James A. Barnes in 1975 and is headquartered in San Diego, CA.’)

What are your thoughts?

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