Unusual Options Activity in Kinross Gold Corporation (KGC)
Today, February 14, 2022, in the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Kinross, which opened at $5.74.
- There were a series of orders on the $7 strike call option dated for June 17th, 2022, bought to open at or near the ask of $0.25 with a bid-ask range of $0.23 to $0.26.
- The open interest on this chain as of this morning’s open was 921 contracts. The volume thus far is now over approximately 3,100; therefore, we may intuit that these traders are opening positions, either buying to open or selling to open, not closing.
Please note, Kinross reporting its earnings on February 16th, 2022, after market close.
Additionally, these orders were spotted in the new Unusual Whales hottest chains page with a high acceleration factor; this implied that more orders outside of a standard deviation were being opened on this chain.
The volume on this chain has now increased to 3,155 as of this writing; the open interest today was 921, so we can intuit these contracts all as having been bought or sold to open, not closed.
Unusual Options Activity in Freshworks Inc. (FRSH)
In the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity in Freshworks Inc. (FRSH), which opened today at $18.72.
- There were two independent orders of 8,000 and then 1,000 contracts traded on the February 18th, 2022 expiration date for the $22.5 strike call options, appearing to be bought to open at the ask with a bid-ask spread of $0.35 to $0.50.
- Then, there were 1,000 and 500 orders traded on the same expiration but on the $20 strike call options, appear to be sold to close at the bid with a bid-ask spread of $1.25 to $1.45.
- Using the interest on the $20 strike call chain over time, we may intuit that these traders are exiting their $20 call positions and entering into $22.5 strike calls.
Of interest, these orders were marked as “floor”. Floor traders work on the floor of an exchange. When a floor trader executes a trade, exclusively for their own account, it must be reported on an exchange by the "floor" tag. Click here to read about floor traders' performance.
A tip from the flow: Trades appended with the ↕ emoji are trades that have potentially came in together as a part of a strategy, and are coded accordingly as MLET or MLFT, under the codes column. Click on that emoji will open all of the trades that came in together so that the holistic strategy may be investigated.
These orders come after Keith Noonan from The Motley Fool explained that Freshworks:
“got crushed Friday. The software-as-a-service stock ended the daily trading session down 18% due to turbulence for the broader market and weaker-than-expected guidance that arrived with the company's fourth-quarter results.”
As the volume Friday, the 11th, was 6,287 contracts traded, and today’s volume from these orders themselves have amounted to 5,000 contracts, we may intuit that this trader is rolling their contracts up, assuming these orders were indeed correlated.
Unusual Options Activity in YETI Holdings, Inc. (YETI)
Finally, and again in the NYSE, we saw unusual or noteworthy options trading volume and activity in YETI Holdings, Inc. (YETI), which opened today at $65.11.
- There were 1,901 contracts traded on the $62.5 strike put option dated for February 25th, 2022 bought to open at the ask at a spot price of $2.85 with a bid-ask spread of $2.50 to $2.95. The volume on this chain is now nearly 3K and the open interest as of this morning’s open was just 25 contracts open.
Please note, YETI reports its earnings today, February 17th, before market open.
32.1% of the premium traded is in bullish bets, with 9.1% of the premium traded is in calls, with 68% as ask-side orders. The put call ratio for YETI is 6.07, which is bearish.
A tip from the flow: The put/call ratio (P/C) is put volume divided by call volume. Put/call ratio is important and can be an indication of sentiment shifting. A P/C greater than .7 means more puts are being bought than calls, so the trend is getting bearish. A P/C of .7 to .5 is becoming more bullish. (This distinction is made because more calls are often traded than puts, so a P/C of 1 is outside of the median.)