Unusual options activity in Service Properties Trust (SVC), Ginkgo Bioworks Holdings (DNA) and Oatly Group AB (OTLY)
An examination of unusual options activity in Service Properties Trust (SVC)
Today, March 8, 2022, in the market capitalization-weighted NASDAQ Global Select Market Composite Index (NasdaqGS), we saw unusual or noteworthy options activity in Service Properties Trust (SVC), which opened at $7.13.
- There were 2,000 contracts traded on the $10 strike call options dated September 16, 2022, trading at $0.50 with a bid-ask spread of $0.45 to $0.60.
- Also, prior to this order, there were 1,000 other contracts as ground trades on the same strike and expiry, but for a spot price of $0.60.
- Open interest on this channel was around 1.1000 from floor trading; volume of 2,000 exceeds that, implying that these orders were bought or sold to open, not to close.
See above are notable options in service properties of the Unusual Whale Flow.
The chart above depicts Service Properties historical price in cyan, call volume in green, volume set in red, and open interest in blue.
At the time of this writing, Service Properties has received 3,154 exchanged calls, which is 2,049% more than its 30-day call average. Service Properties has a put/call ratio of 0.13, which is definitely bullish; however, this company does not get enough liquidity in options to see it as a true indication of sentiment.
A tip from the stream: The put/call ratio (P/C) is the put volume divided by the call volume. The put/call ratio is important and can be an indication of a change in sentiment. An AP/C above 0.7 means that more puts are bought than calls, so the trend becomes bearish. The AP/C from 0.7 to 0.5 becomes more bullish.
Unusual options activity at Ginkgo Bioworks Holdings, Inc. (DNA)
Among the underlying constituents of the NYSE, we saw unusual or remarkable options trading volume and activity at Ginkgo Bioworks Holdings, Inc. (DNA), which opened today at $3.43.
- There were 6,000 contracts traded on the $6 strike put option as of March 18, 2022, for approximately $1.7M in traded premium.
- This channel had an open interest of around 17.1K, so it is impossible to know if these orders were bought or sold at the open.
- However, these orders were traded above the ask at a spot price of $2.90 with a bid-ask spread of $2.55 to $2.85, implying interest in entering the positions. sooner than later.
- Attention, these orders precede Ginkgo which will publish its results on March 14, 2022.
Above are notable Ginkgo options from the Unusual Whales flow alerts page.
A tip from the flow: When viewing alerts in the Unusual Whale Flow Alerts Pageyou can click “Link to feed” to view channel activity in the global options order feed, as shown here:
Above are the two notable Ginkgo options of the Unusual Whale Flow.
- As can be seen, the original 6,000 contracts that were entered into were canceled and returned to options order flow thereafter, but at a new spot price of $2.85 from the Original $2.60. The order was filled at $2.85, which is still within the mid-range of the bid-ask spread of $2.55 to $3.10.
- Please note that crossed out transactions have been canceled for one reason or another. Transactions can be modified or canceled for a variety of reasons, and according to the SEC: to maintain a fair and orderly market. Exchanges can mistakenly send more trades than were actually placed, especially during periods of high volume. This is a normal occurrence.
Above are all the commands that could have gone together in the original command.
A tip from the stream: Trades with the ↕ and 🔃 emojis added are trades that have potentially been integrated as part of a strategy and are coded accordingly (like MLET or TLCT) in the codes column. Clicking on these emojis will open all trades that have entered together so that the holistic strategy can be studied.
Unusual options activity in the Oatly AB (OTLY) group
Finally and again in the NasdaqGS, we saw unusual or remarkable options trading volume and activity at Oatly Group AB (OTLY), which opened today at $5.75.
There were two sets of options contracts purchased at the expirations of April 14, 2022:
- 10,000 contracts traded on $5 strike call options at a price of $1.15 with a bid-ask spread of $1.00 to $1.15.
- 20,000 contracts traded on $7.5 strike call options at a price of $0.30 with a bid-ask spread of $0.25 to $0.35.
- The open interests of these chains were 24 and 417 contracts; therefore, these two orders were bought or sold to open and not to close.
- Attention, these orders precede the publication by Oatly of its results on March 9, 2022, before the opening of the market.
See above are the notable options in Oatly of the Unusual Whale Flow.
Interestingly, these orders were marked as “floor”. Floor traders work on the floor of an exchange. When a floor trader executes a transaction, exclusively for his own account, this must be indicated on a stock exchange by the “floor” tag.
See above are the notable options in Oatly of the NEW Unusual Whales Hottest Chains Tool.
As can be seen, the acceleration factor for contracts has decreased, which implies a decrease in interest in these chains after these large orders.
The chart above depicts Oatly’s historical price in cyan, call volume in green, sell volume in red, and open interest in blue.
As of this writing, Oatly has had 30,916 calls made, which is 1,031% more than its 30-day call average.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.