The options market has been used as a gauge for individual stocks and the market as a whole for quite some time.
Below is a list of some of the biggest option trades from this week and what they might mean for the future of each stock.
Blockbuster Option Trade Indicators & Sentiment:
- Traders bet millions on NIO Limited (NYSE:NIO) put options. The company designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United Kingdom, and Germany.
- XPeng Inc. (NYSE:XPEV) attracting bearish put options bets. The company designs, develops, manufactures, and markets electric vehicles in the People’s Republic of China.
- AerCap Holdings N.V. (NYSE:AER) losing altitude with large-block put trade. This is an aircraft leasing company that operates in the lease, financing, sale, and management of commercial aircraft and engines.
- Tilray, Inc. (NASDAQ:TLRY) coming off a “high” with bearish put options bets. This company researches, cultivates, processes, and distributes medical cannabis.
- Taubman Centers, Inc. (NYSE:TCO) emerging from rags to riches with large bullish call options trades. A Real Estate Investment Trust that owns, manages and/or leases 26 regional, super-regional and outlet shopping centers in the U.S. and Asia.
- TripAdvisor, Inc. (NASDAQ:TRIP) booking more travel with $2.6 million in bullish call option bets. This is an online travel company that operates in two segments, hotels, media & platform; and experiences and dining.
- The AES Corporation (NYSE:AES) electrifies more and more call options traders. A power generation and utility company.
- Bullish options traders starting to think Pinduoduo Inc. (NASDAQ:PDD) can compete with Alibaba. An e-commerce platform in the People’s Republic of China. Similar to Amazon.
- Rocket Companies, Inc. (NYSE:RKT) is blasting off with call options trades. RKT is involved in originating, processing, underwriting, and servicing mortgages in the United States.
- Roku, Inc. (NASDAQ:ROKU) is beaming up TV content to new orbits thanks to these call options. A TV streaming platform operating in two segments, Platform and Player.
Bottom Line: Options can be very risky but also part of a balanced investments strategy. Following large-block options trades like these can provide evidence of investor sentiment and future share price moves.
Until Next time,
The BLI Staff