Unusual Options Activity in Marvell Technology (MRVL), NVIDIA (NVDA), and Bausch Health Companies (BHC)


Unusual Options Activity in Marvell Technology, Inc. (MRVL)

Today, January 19, 2022, in the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity in Marvell Technology, Inc. (MRVL), which opened at $78.34.

0119 uw1

Seen above are the noteworthy options in Marvell from the Unusual Whales flow.

Please note, trades that are struck through have been canceled for one reason or another. Trades can be modified or nullified for a variety of reasons, and per the SEC: for the maintenance of a fair and orderly market.

Exchanges can erroneously send more trades than were actually placed, especially during times of high volume. This is a normal occurrence.

0119 uw2

The charts above represent Marvell’s option flow data with regards to the last 250 trades of the most sizable orders.

69.9% of the premium traded is in calls, with 67.4% as ask-side orders, with only 15.7% of the volume of options trades being in puts. The put call ratio for Marvell is 0.394.

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.

To view more information about MRVL’s daily flow breakdown, click here to visit unusualwhales.com.

Unusual Options Activity in NVIDIA Corporation (NVDA)

Again in the NasdaqGS, we saw unusual activity in NVIDIA Corporation (NVDA), which opened today at $260.79.

  • There were 1,357 contracts traded on the $230 strike put option, bought to open at the ask, dated for January 28, 2022.
0119 uw3

Seen above are the noteworthy options in NVIDIA from the Unusual Whales flow.

A tip from the flow: Trades appended with a briefcase emoji can be intuited as bought or sold to open. This determination is made if the size of the trade was greater than the chain’s open interest.  Only trades that can be positively identified as being bought or sold to open will be marked as such (with the briefcase).  Be mindful! Trades without the briefcase emoji might still have been bought or sold to open!  You may also watch this video to see how to track these kinds of opportunities in the Unusual Whales flow.

Furthermore, just because these orders were indeed opened, it cannot be absolutely known whether these calls were sold to open or bought to open; however, they were traded at and in some cases above the ask, so assuming long, bought to open positions is often what intuition tells us.

0119 uw4

The charts above represent NVIDIA’s option flow data with regards to every trade in the flow at different levels of premium traded: $5,000, $15,000, $30,000, and $200,000.

53.90% of the premium traded at the $30,000 levels are in bullish bets, with a great majority of betting, however, being in put premiums. Furthermore, the $5,000 premium levels are in bullish premiums at 52.20%, with $3M more in put premium traded then in calls.

Reuters recently reported that “retail investors show signs of fatigue after last year’s trading frenzy.”

To view more information about NVDA’s flow breakdown, click here to visit unusualwhales.com.


Unusual Options Activity in Bausch Health Companies Inc. (BHC)

Finally, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Bausch Health Companies Inc. (BHC), which opened today at $26.66.

  • There were a series of orders on the $18 and $20 strike call options dated for February 18, 2022
  • The open interest on these chains were between 7 and 57 open contracts as of today’s open, so this surge in volume is noteworthy and significant
  • It must be noted that these are not necessarily liquid chains with a wide bid-ask spread, sometimes more than a dollar wide, such as in the case of the first set of orders on the $18 calls; therefore, while these orders came in close to the bid, or even a mid price, it cannot be rightly ascertained if they were, in fact, bought or sold to open
0119 uw5

Seen above are the noteworthy options in Bausch Health from the Unusual Whales flow.

These orders come after Zacks Equity Research reported that Bausch Health “has announced that its eye care business, Bausch + Lomb Corporation is going public in the United States and Canada.”

0119 uw6

The chart above represents Bausch Health’s historical price in cyan, call volume in green, put volume in red, and open interest in blue.

Of interest, these orders were marked as “floor.” On the Unusual Whales blog is a report on floor traders’ performance. 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.

To view more information about BHC’s flow breakdown, click here to visit unusualwhales.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link


Leave a Reply