Unusual Option Activity for Nov-05-2020 BX, BIIB, NIO

Daily Synopsis -

  • The S&P 500 increased +1.95% today while the NASDaq added (+2.56%). The Russell 2000 rose by (+2.8%). The Dow ended in positive territory at (+1.94%)
  • All sectors ended in positive territory today. The best performing sector was Materials(+4.08%) while Energy(+0%)was the worst performer.
  • Presumably, the market remained pleased by the prospect of a divided Congress, meaning it would be difficult to pass new legislation like higher taxes. Regarding the presidential election, there was still no projected winner, but former Vice President Biden led President Trump 253-214 in the delegate count, according to The New York Times.
  • In addition, the bullish price action likely exacerbated a fear of missing out on further gains, particularly among investors who sold the market last week. Today’s advance increased the S&P 500’s weekly gain to 7.4% after falling 5.6% last week.
  • Separately, there were no surprises in the FOMC policy statement or Fed Chair Powell’s press conference. The fed funds rate was left unchanged as widely expected. Mr. Powell said the current pace of asset purchases remained appropriate for the current situation but added that the voting committee discussed options if more accommodation is needed.
  • Treasury yields were subdued all session following yesterday’s rally in longer-dated tenors, which was another supporting factor for growth stocks. The 2-yr yield was unchanged at 0.15%, and the 10-yr yield increased one basis point to 0.78%.
  • Looking ahead, investors will receive the Employment Situation Report for October, Consumer Credit for September, and Wholesale Inventories for September on Friday.

Index Summary -

S&P 500 : (+1.95%); NasDaq : (+2.56%);
Russell 2000 :(+2.8%); Dow :(+1.94%);
Vix :29.57 (-6.73%); [-26.63%]; {+0.11%}

Sector Summary -

Three highest sectors for today were –
Materials: (+4.08%); Information Technology: (+3.11%); Financials: (+2.44%)
Three lowest sectors for today were –
Energy: (+0%); Health Care: (+0.2%); Real Estate: (+0.36%)

Commodities/Futures -

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

Currency –
USD Index :93.411 (-0.9%); [-1.67%]; {-0.39%}
BC :14200 (+8.49%); [+11.71%]; {+12.57%}

Precious Metals –
Gold :1896.2 (+2.84%); [+3.15%]; {+2.16%}
Silver :23.893 (+6.47%); [+5.97%]; {+3.73%}

Farming –
Soybeans :1086.25 (+1.61%); [+5.04%]; {+1.99%}
Corn :405.25 (+0.74%); [+2.7%]; {-1.86%}
Coffee :105.65 (+3.12%); [+5.98%]; {+1.87%}

Industrials –
Crude :39.15 (-1.56%); [+4.7%]; {-2.6%}
Nat Gas :3.046 (-3.84%); [-9.71%]; {-2.98%}
Copper :3.107 (+0.26%); [+1.35%]; {+0.81%}

Spac Corner -
*SPAC ETF is the top 25 SPACS trading above IPO price. SPACs must be trading >5% of IPO Price. SPAC ETF : (0.33%)
Top 5 Highest SPAC % Changes –
1. SBE- 15.33 1.13 (+7.96%); 52 week high :17.6
2. FEAC- 12.42 0.79 (+6.79%); 52 week high :14.7
3. MNCL- 10.1 0.55 (+5.76%); 52 week high :10.88
4. LCA- 13.39 0.69 (+5.43%); 52 week high :19.28
5. IPOB- 18.92 0.72 (+3.96%); 52 week high :27.0
Top 5 Lowest SPAC % Changes –
1. KBLM- 6.11 -0.35 (-5.42%); 52 week high :11.5
2. CFFA- 10.23 -0.17 (-1.64%); 52 week high :12.1
3. HCCO- 9.22 -0.13 (-1.39%); 52 week high :12.08
4. CIIC- 10.01 -0.14 (-1.38%); 52 week high :10.4
5. GLEO- 9.82 -0.13 (-1.31%); 52 week high :10.34
Top 5 Spacs by Volume –

1. FUSE- 9.8 0.0 (0.0%); Volume :3,101,962; ADV:127,347
2. NFIN- 10.18 -0.04 (-0.39%); Volume :2,161,834; ADV:904,176
3. FEAC- 12.42 0.79 (+6.79%); Volume :2,141,388; ADV:2,147,296
4. IPOB- 18.92 0.72 (+3.96%); Volume :2,109,087; ADV:3,208,335
5. SBE- 15.33 1.13 (+7.96%); Volume :1,926,358; ADV:3,392,703
Top 5 Spacs Trading Above ADV –

1. FUSE- 9.8 0.0 (0.0%); ADV:127,347: Multiple of ADV:24.36
2. AGBA- 10.25 0.0 (0.0%); ADV:3,574: Multiple of ADV:23.29
3. AMHC- 9.86 0.0 (0.0%); ADV:7,711: Multiple of ADV:16.92
4. CHAQ- 9.79 0.0 (0.0%); ADV:4,856: Multiple of ADV:6.3
5. APXT- 10.175 0.065 (+0.64%); ADV:226,243: Multiple of ADV:5.7

Dark Pool Summary -

Highest Dark Pool buys by rank –
1. CRM 2 buys totaling 3,651,983 shares. Average Price : 257.9, Cost : $942,074,313
2. AMZN 1 buys totaling 164,700 shares. Average Price : 3355.48, Cost : $552,646,798
3.SQ 6 buys totaling 2,947,200 shares. Average Price : 174.63, Cost : $514,760,198
4.NFLX 2 buys totaling 583,838 shares. Average Price : 517.0, Cost : $301,844,246
5. FB 2 buys totaling 407,000 shares. Average Price : 295.36, Cost : $120,199,994

Options Fast Facts -

CBOE Put/Call Ratio – 0.45
Highest Multiple Over Daily Average – ANGI with 21x the ADV of 2223. There were 33904 calls and 11776 puts.
Ticker with Most Contracts –NIO with 1440306 contracts traded today with an AVD of 695537. There were 1047276 calls and 393030 puts.
Largest Put / Call Ratio – XEC with a 469 P/C ratio. There were 10311puts and 22 calls.
Largest Call / Put Ratio – IWN with a68 C/P ratio. There were 10262 calls and 150 puts. *Stocks must be >$6, Highest Multiple must have >1k ADV, Largest ratios must have an option volume >10k

Yesterday's Picks -

AMD 83.08 +1.73,(+2.13%)
LI 28.065 +2.755,(+10.88%)

You can find yesterday’s post here.

Momentum Unusual Option Activity

First Momentum Stock Pick -

Ticker:BX 57.45,2.5(+4.55%) Earnings: 2021-02-04

Name :The Blackstone Group, Inc. Special Considerations : ExDiv

Industry : Finance Sector : Investment Managers
Option Information –

Today’s Option Volume: 130335; OptionOI: 415194

Multiple of ADV: 9; ADV: 14990

Total Calls: 121899; Total Puts: 8436

Calls at Ask: 51.8%; Calls at Bid: 15.8%

Puts at Ask: 21.6%; Puts at Bid: 10.0%

C/P Ratio: 14

Noteable Strikes

NOV 06 ’20 52.0C had 5811 VLM and 1902 OI.
NOV 06 ’20 55.0C had 2725 VLM and 917 OI.
NOV 20 ’20 35.0C had 2700 VLM and 899 OI.
NOV 20 ’20 52.5C had 2292 VLM and 860 OI.

News

No news for today

Potential Sympathy Stocks

KKR, LAZ, EVR, GHL

Impression

The Call Ask Percent is high. The Multiple of ADV is okay. The Call/Put Ratio appears bullish.

Company Description for :BX

The Blackstone Group, Inc. engages in the provision of investment and fund management services. It operates through the following segments: Private Equity, Real Estate, Hedge Fund Solutions and Credit. The Private Equity segment consists of flagship corporate private equity funds, Blackstone Capital Partners funds, sector-focused corporate private equity funds, including energy-focused funds, Blackstone Energy Partners funds, and core private equity fund, Blackstone Core Equity Partners. The Real Estate segment includes management of core real estate fund and non-exchange traded restate investment trusts. The Hedge Fund Solutions segment comprises of Blackstone Alternative Asset Management, which manages hedge funds and includes Indian-focused and Asian-focused closed-end mutual funds. The Credit segment includes GSO Capital Partners LP, which manages credit-oriented funds. The company was founded by Stephen Allen Schwarzman in 1985 and is headquartered in New York, NY.

Second Momentum Stock Pick

Classic Unusual Option Activity

First Classic Unusual Options Activity Pick -

First Classic Unusual Options Activity Pick –

Ticker:BIIB 329.07,-26.56(-7.47%) Earnings: 2021-02-04

Name :Biogen, Inc.

Industry : Biotechnology

Option Information –

NOV’13 20 365.0C – 907 @ 8.05 were traded at 12:49:00 as a BLOCK Spot Price: 326.14

News –

2020-11-05 14:45:46:Breakingviews – Biogen gets $17 bln jolt of Alzheimer’s hope

Biogen’s potential new treatment of Alzheimer’s disease could be the biggest drug ever. The company added $17 billion to its market capitalization on Wednesday when the Food and Drug Administration hinted in released documents that regulators were persuaded the drug worked…

2020-11-05 14:00:16:Biogen Analysts Brace For Favorable Aducanumab Adcom Verdict

Biogen Inc (NASDAQ: BIIB ) shares saw a nice 40% bump Wednesday following the release of FDA briefing document prepared for Friday’s Adcom meeting to discuss aducanumab BLA. Morgan Stanley analyst Matthew Harrison maintained an Overweight rating and $357 price target. BofA Securities analyst Geoff Meacham upgraded Biogen from Underperform to Neutral and increased the price target from $230 to $360. BTIG analyst Thomas Shrader maintained a Neutral rating. High Likelihood of Ultimate Aducanumab Approval: FDA’s position is highly supportive of aducanumab approval, with the questions presented to the panel structured to reinforce FDA’s position, Harrison said. Notwithstanding the statistical review, which is the only negative data point, the outcome of the Adcom meeting is likely to be positive. “Overall, we now believe there is a high likelihood of ultimate FDA approval of aducanumab ,” Harrison wrote in the note. Related Link: Attention Biotech Investors: Mark Your Calendar For These November PDUFA Dates Favorable Briefing Document Surprising: …

Sympathy Stocks for : BIIB

AMGN, GILD, ABBV, PFE

This stock was also mentioned on Oct-19-2020 at a closing price of 268.79

Company Description for :BIIB

(‘BIIB’, ‘Biogen, Inc. is a biopharmaceutical company, which engages in discovering, developing, and delivering therapies for neurological and neurodegenerative diseases. It offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA, and FAMPYRA for the treatment of multiple sclerosis; SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of severe plaque psoriasis. The company was founded by Charles Weissmann, Heinz Schaller, Kenneth Murray, Walter Gilbert, and Phillip Allen Sharp in 1978 and is headquartered in Cambridge, MA.’)

Second Classic Unusual Options Activity Pick -

Ticker:NIO 42.35,4.64(+12.3%) Earnings: 2020-11-17

Name :NIO, Inc. (China)

Industry : Motor Vehicles

Option Information –

NOV’20 20 50.0C – 2,149 @ 1.08 were traded at 11:00:00 as a SWEEP Spot Price: 39.15

News –
2020-11-05 15:16:39:China’s Nio Steamrolls Past GM’s Market Cap, Becoming 7th Most Valuable Automaker

Chinese electric vehicle startup Nio Inc – ADR (NYSE: NIO ) has mounted an 800%-plus stock rally year-to-date, and its market capitalization now sits among the most storied names in the automotive industry. Nio Pushes Ahead: The gains have catapulted Nio’s market capitalization above that of several traditional automakers such as Bayerische Motoren Werke ADR (OTC: BMWYY ), Honda Motor Co Ltd (NYSE: HMC ) and Ford Motor Company (NYSE: F ). Wednesday’s 6% rally in Nio shares propelled the EV maker’s market capitalization above the valuation of Detroit automotive giant General Motors Company (NYSE: GM ). At Wednesday’s closing price of $37.71, Nio was valued at $51.29 … Full story available on Benzinga.com

2020-11-05 14:40:57:Why BofA Is Bullish On Chinese EV Manufacter Xpeng

Xpeng Inc – ADR (NYSE: XPEV ) shares have been on a tear , thanks in part to strong deliveries the Chinese electric vehicle maker reported for October. The Xpeng Analyst: BofA Securities analyst Ming Hsun Lee reiterated a Buy rating on Xpeng shares and increased the price target from $26.40 to $31.30. The Xpeng Thesis: Xpeng reported stronger volumes for the third quarter and October, and also said order wins remained robust, primarily due to positive feedback for the P7 and upgraded Xmart OS, Hsun Lee said in a Thursday note. Related Link: JPMorgan Sees Nio As Attractive Long-Term Bet In Fast-Growing Chinese EV Market Xpeng revealed at its “XPeng Intelligent EV Day” event Oct. … Full story available on Benzinga.com

Sympathy Stocks for : NIO

SHYF, NSANY, NKLA, NIO

Company Description for :NIO

(‘NIO’, ‘NIO, Inc. (China) is a holding company, which engages in the design, manufacture, and sale of electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Its products include EP9 supercar and ES8 7-seater SUV. The company provides users with home charging, and power express valet service and other power solutions including access to public charging, access to power mobile charging trucks, and battery swapping. It also offers other value-added services such as service package, battery payment arrangement, and vehicle financing and license plate registration. The company was founded by Li Bin and Qin Li Hong in November 2014 and is headquartered in Jiading, China.’)

What are your thoughts?

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