Unusual Options Activity in XP Inc. (XP), Cameco Corporation (CCJ), and Hyzon Motors Inc. (HYZN)

Unusual Options Activity in XP Inc. (XP), Cameco Corporation (CCJ), and Hyzon Motors Inc. (HYZN)
XP's unusual put volume, in red, on September 2nd, 2021.

Unusual Options Activity in XP Inc. (XP)

In the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity today in XP Inc. (XP), which opened today at $50.11.

There were a total of 7,500 contracts traded on the $44 strike put option at the bid, dated for October 15th, 2021, representing approximately 750,000 shares.

Another 7,500 contracts were traded on the $48 strike put option at the ask, for the same date, representing another 750,000 shares.

Finally, another set of 7,500 contracts were traded on the $55 strike call option at the ask, for the same date, representing another 750,000 shares.

Together, this position represents approximately 2,250,000 shares.  However, if these orders were of the same holder, this strategy would have a 34.4% probability of profit, so it is anticipated this was a cross trade, where a broker executed a matched buy and sell order for the same security and they were reported on different exchanges.  These orders come after XP reported its Q2 earnings.

Above: XP's historical price, in blue; put volume has reached a high of 7,502, represented in red, today, September 2nd, 2021. Open interest, in yellow, was 13,962 as of yesterday the 1st.

At the time of this writing, the most active chains are the ones reported above, as all other chains have an open interest of at most 190, such as on the September 17th $47 strike put.

Editor's Note - 5th of September, 2021
Thanks to the efforts of those in the Unusual Whales Discord community, it must be clarified that the above orders were not correlated in any particular fashion outside of what was originally written: if the orders were all presumed to be of the same trader who did not own underlying shares, then there would have been a 34.4% probability or profit, meaning that was not likely the case.

Instead, these orders were likely cross trades, of different traders, or if they were of the same trader, then they would have owned underlying shares, and could have been selling calls (the $55 call strike at the ask) to offset the premium paid for the put debit spread (the $44 put strike at the bid and the $48 put strike at the ask).

Regardless, as with any floor, block, or cross trades, it is always assumed shares are owned and risk is leveraged against them.

Unusual Options Activity in Cameco Corporation (CCJ)

Today, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity inCameco Corporation (CCJ), which opened today at $19.49.

There were a total of 12,750 contracts traded on the $30 strike call option at the bid, dated for December 17th, 2021, representing approximately 1,275,000 shares.  This order comes in after reports that CCJ is now oversold.

Above: CCJ’s price, in blue, since before June 23rd, 2021, call volume has reached a regional high of 57,640, represented in green, today, September 2nd, 2021; open interest, in yellow, was 1,034,330 as of yesterday the 1st.

At the time of this writing, with options betting of at least $1,000 in premium, calls represent 77% of the orders, with puts at 23%, with the most active chain at October 15th, 2021, with $16,189,168 in bearish premium.  By expiry, of orders of at least $30,000 premium, the above reported chain is the most active, with $21,612,368 bullish premium traded.

Above: CCJ’s options chain breakdowns with at least $1,000 in premium, with a breakdown by expiry on the left and by strike on the right.

Unusual Options Activity in Hyzon Motors Inc. (HYZN)

In the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity today in Hyzon Motors Inc. (HYZN).

There were a total of 10,000 contracts traded on the $12.5 strike call option at the ask, dated for September 17th, 2021, representing approximately 1,000,000 shares.

Yesterday, Hyzon Motors (HYZN) and gas distribution utility Southern California Gas said Wednesday they are entering a partnership on a hydrogen-powered fuel cell electric utility truck.  Furthermore, investors are looking to Chinese ETFs as a bargain after having been beaten down.

Above: HYZN’s price, in blue, since before August 18th, 2021, call volume has reached a regional high of 10,733, represented in green, today, September 2nd, 2021; open interest, in yellow, was 83,736 as of yesterday the 1st.

The orders in the below image show the biggest option trades, and as of this writing, and as can be seen, the $10 strike call and $12.5 strike call options, for October 15th and September 17th, 2021, respectively, are crossed, both representing the 1,000,000 shares each.

HYZN's biggest options orders.

For further information on the unusual options activity of XP, CCJ, and HYZN, visit unusualwhales.com.