Options Market Statistics (12/15): Stock Traders Buy Large Volume of Grab Call Options
U.S. stock futures fell after the Federal Reserve signaled plans to lift interest rates through the spring, dashing some investors' hopes that easing inflation figures might mean rates wouldn't ultimately have to go so high or could come back down sooner.
New stocks today (compared to previous column): $SoFi Technologies (SOFI.US)$, $Alibaba (BABA.US)$ , with stock options volume increasing.
News Highlights
$Tesla (TSLA.US)$ boss Elon Musk disclosed another $3.6 billion in stock sales on Wednesday, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows. Tesla plunged nearly 3% again as shares fell to $156.80, with an option volume of nearly 3.29 million, and puts accounted for nearly 58%.
Bloomberg posted an article named: Chinese Stock Delisting Threat Eases as US Gets Access to Audit Data. The Biden administration plans to remove some Chinese entities from a red flag trade list, according to the Reuters. Shares of $Alibaba (BABA.US)$ jumped premarket Thursday, with an option volume of nearly 460,000, and puts accounted for over 80%.
$SoFi Technologies (SOFI.US)$ shares were getting a major lift Wednesday after the company's chief executive Anthony Noto disclosed a sizable purchase of the stock. Sofi jumped more than 6% yesterday, with an option volume of nearly 300,000, a tripling of the average volume, and calls accounted for nearly 76.3%.
Unusual Stock Options Activity
The Jan. 20 2023 $4 calls for $Grab Holdings (GRAB.US)$ are seeing the extremly active action from traders, with volume-to-open interest ratios of 65x, signaling a strong confidence in the company.
Source: Benzinga, Dow Jones, CNBC
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Dream Weaver : when the boss and largest shareholder dumps stocks for the wrong reason (perhaps to save Twitter?) it does spell more tough days ahead,. or does he plan to buy back at $100 later? lol
Options Newsman OP Dream Weaver : If the stock price keep going down, he will get a margin call from banks in some point.
Options Newsman OP Dream Weaver : He borrowed money from banks, such as Morgan Stanley to fund his Twitter purchase, with Tesla shares. If those shares' value keep going down, he will received a margin call.