The market is sitting at all-time highs. And meme stocks are running wild.
One thing I liked to do after the market closes is check out how the options market is positioned for the following week.
What exactly am I looking for?
Big bets on OTM options expiring in a few days.
SPCE Options Flying
On Friday SPCE shares went flying after it was announced that the company received FAA approval for commercial space flights.
About 20% of the shares floating are short, according to data from Finviz.
Where was the action?
Over 110K contracts of the July 2nd $60 calls traded. One of the biggest trades we saw was an order of 1k contracts being snagged up for $4.20. The trader dropped $420K on this trade, in which they are in jeopardy of losing if the stock stays here and they hold till expiration.
Taking A Bite Out of AAPL
With investors getting more comfortable with inflation concerns, the attention has been refocused on growth stocks. Many market pundits believe that if the tech rally is to continue, the big players will need to get involved.
We haven’t seen much from the likes of AMZN, NFLX, and AAPL this year…but is their time coming?
Where was the action?
Over 66K contracts of the AAPL July 2nd $135 calls traded on Friday. Early in the afternoon a trader came in and swooped 1990 call contracts at $0.67 a piece, a total of $133K in premium. This trader will need to see AAPL continue its upwards momentum if they want to cash out for a profit.
Is NOK Back In The Meme Picture?
Meme stocks are like roaches…they don’t die…they multiply. And once you’re a meme stock…you’re a meme stock for life.
Nokia entered meme stock status last January when it hit a 52-week high of $9.79. However, the reason for Friday’s move up might not be meme related.
You see, the stock caught a BUY upgrade from Goldman Sachs. They stated it has underperformed its rivals…but now sees its wireless products gaining traction, with the potential to catch its competitors.
Where was the action?
Over 37K contracts of the July 2nd $6 calls were traded on Friday. The top trade consisted of an order of 3k contracts purchased for $0.10, an outlay of $30K in premium.
Unlike many of the other popular meme stocks, NOK does not have a high short interest. Which makes it less likely to experience that squeeze action we’ve seen in other names. However, it could be in-play if you see it mentioned on message boards over the weekend.
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