Today, within the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity in Airbnb, Inc. (ABNB), which opened at $170.00.
There were several orders made totaling 96 contracts traded on the $175 strike put option dated for November 5th, 2021. The open interest on this option chain was 8 as of yesterday’s close.
Additionally, there were 115 contracts traded on the $185 strike put option for October 15th, 2021, however these orders were not above the open interest on this chain, which was 415 as of yesterday’s close.
From the Motley Fool, Jon Quast has opined that:
“Now that people are traveling again, free cash flow is coming back up, the valuation multiple coming back down. I really just wanted to focus on that -- the mindshare that Airbnb has in the consumer, and why I think if you're invested in this space, you really have to be giving Airbnb a serious look.”
Furthermore, these orders come ahead of Airbnb, Inc.’s earnings report, slated for November 11th, 2021.
On the left are options chains broken down by expiration and on the right they are broken down by strike.
As seen, the $150 strike has more bullish betting by these whales, amassing a premium of $381,450; the October 15th date is the most betted upon, albeit with $406,193 bearish premium overtaking bullish, at $381,450.
Within the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Petrobras, which opened today at $10.65.
These orders were possibly related, having came in together, and represent a vertical call debit spread:
This strategy would cost $120,000 for the trader to take on, which also represents the strategy's maximum risk of the debit paid. The probability of profit would be approximately 32.9% and has a maximum return on risk of 233.3%. For this strategy to breakeven, PBR would need to be $11.30 at these contracts’ expirations.
These orders come after September 29th reports stating that Petróleo Brasileiro S.A. - Petrobras had slightly advanced after it reported that partner CNOOC Petroleum Brasil was interested in exercising the option to buy an additional 5% share in the production sharing contract of the transfer of rights surplus for the Buzios field off the coast of Rio de Janeiro, Brazil.
As seen, bullish premium still accounts for 50.3% of the options chains. Call volume represents 96.4% of options traded. The primary expiration traded is December 17th, 2021 and the primary strike is at $9.
Finally, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in The Gap, Inc. (GPS), which opened at $23.55.
There were 1,000 contracts traded on the $70 strike put option at the ask, dated for November 19th, 2021, representing approximately 100,000 shares, or $1,000,000 in premium traded.
These orders come after Reuters reports stating that “Gap is previewing its gift guides in October in hopes of prodding shoppers to begin making purchases before the holiday gift-giving scramble” in spite of critical supply chain issues.
As seen, in spite of the aforementioned reports, ask side activity still accounts for 69.0% of chains, with 76.7% of the premium traded are in puts, and bearish premium accounting for 78.8% of these chains.
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