Unusual Options Activity in Skechers U.S.A., Inc. (SKX)
Today, October 14, 2021, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Skechers U.S.A., Inc., which opened at $43.15.
There were 10,000 contracts traded on the $49 strike call option, at the ask, dated for November 19th, 2021.
Additionally, there were another 10,000 contracts traded on the $55 strike call option, for the same date, but this time at the mid spot price of $0.3, with a bid-ask spread of $0.25-$0.35.
Therefore, we might intuit these orders to be a call debit spread, with a maximum risk of $700,000 (the debited cost of entry), a maximum return of $5,300,000, and a probability of profit of approximately 18.8%.
These orders come in after BNK Invest’s reports that SKX had entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $42 per share.
As of this writing, SKX has had 21,032 calls traded, which is 914% greater than its 30-day call average.
Unusual Options Activity in Royal Dutch Shell (RDS-A)
Again in the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity today in Royal Dutch Shell (RDS-A), which opened at $48.06.
There were 1,988 contracts sold on the $47 strike call option dated for October 15th, 2021.
Additionally, there were another 1,988 contracts traded on the $50 strike call option dated for November 19th, 2021. Together, these orders represent approximately 397,600 shares and $436,000 premium traded.
The open interest on the $47 strike call option were approximately 3,990 as of today’s open; therefore, it might be presumed the volume on the $47 strike was to close these existing positions in order to roll the expirations to the later date of November 19th, 2021.
To know if this was valid roll, check the open interest on these options chains tomorrow to know if this was in fact what transpired.
These orders come after reports where MTNewswires reported that RDSA’s:
“Shell Egypt and Shell Austria units have completed the sale of their upstream assets in Egypt's Western Desert to a consortium made up of subsidiaries of Cheiron Petroleum and Cairn Energy. Shell's class A stock was declining 0.4% in recent trading.”
As can be seen, 52.1% of the options order flow at these premium levels are bullish, with 50.7% being ask-side and 83.1% of the premium traded being in calls.
Unusual Options Activity in NexGen Energy Ltd. (NXE)
Finally, and again within the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity today in NexGen Energy Ltd. (NXE), which opened at $6.11.
These orders come after today’s reports from BNK Invest revealing that NXE has “crossed above the average analyst 12-month target price of $5.95, changing hands for $6.11/share”.
As of this writing, NXE has had 6,682 calls traded, down from yesterday’s high of 17,677; open interest has also declined to 60,029 as of open, from 84,566 contracts being traded as of open on Tuesday, October 12th.