Trending Option Names
Let’s take a look at some of the trending option plays from Friday.
As I’ve mentioned in previous newsletters, looking at option flows can help you determine where stocks are headed. Looking at stale ratios and indicators like P/E and the 200-day moving average is the equivalent of skating to where the puck is now, rather than skating to where the puck is going.
We use Options Matrix built by our partners at Vigtec to see option flows. Check out their 7-day free trial here. All the charts you see below are from their app.
One stock we noticed with unusual put activity is Canadian Pacific Railway (CP), A few large put orders came in near the end of the close Friday. Sure enough, the stock continued to fall into the close.
One hot WallStreetBets name we noticed in the options flow Friday was AMC. Options for AMC were hot all week. Implied volatility is really high, in the 200 to 300% range for most calls.
Another WallStreetBets favorite we saw bullish options activity on is American Airlines (AAL). AAL had high call premium Friday with several calls falling into the “Heating Up” category on the Options Matrix.
The heating up scan shows us calls that with volume more than two times the 10-day average. Several AAL calls showed up on this scan Friday, including the 5/28/2021 $25 calls. Volume for the option was 7,895 Friday, 492% higher than the average over the previous 10 days.
