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Jon Najarian Spots Unusual Options Activity in 3 Reopening Stocks

Jon Najarian was on CNBC’s Halftime Report today to talk about Unusual Options Activity in three reopening stocks. Those names were: Farfetch Limited ($FTCH), Dollar General ($DG), and Las Vegas Sands ($LVS).  Farfetch Limited ($FTCH) Chart courtesy of TradingView. Farfetch Limited is a luxury retailer that we don’t see very often, but has been popping […]

By Market Rebellion · January 14, 2022
Jon Najarian Spots Unusual Options Activity in 3 Reopening Stocks

Jon Najarian was on CNBC’s Halftime Report today to talk about Unusual Options Activity in three reopening stocks. Those names were: Farfetch Limited ($FTCH), Dollar General ($DG), and Las Vegas Sands ($LVS). 

Farfetch Limited ($FTCH)

Chart courtesy of TradingView.

Farfetch Limited is a luxury retailer that we don’t see very often, but has been popping up on our radar repeatedly as of late. When we see repeated unusual options activity in a name that doesn’t receive a lot of fanfare, it always piques our interest. That’s what happened here.

A buyer came in yesterday with a huge purchase of 5,500 January calls at the $30 strike. He spent about $300,000 on those calls, and then $FTCH dropped overnight. Undeterred, the buyer came back with an even bigger purchase: 10,000 March calls at the $30 strike. This was ridiculously far above the open interest of 140, and this trade encapsulates Farfetch’s earnings. This unusual options purchase cost the buyer $1,600,000.

Repeat massive trades, far above open interest? That’s what we like to see. 

Dollar General ($DG)

Chart courtesy of TradingView.

Dollar General is an American chain of variety stores known for its low-prices. A buyer of 6,486 of the February 18th $210 strike puts spent about $2.6 million dollars to make a bet that Dollar General would sink ahead of its earnings. As Jon speculated on Halftime, perhaps this buyer believes $DG won’t be able to pass on inflation-related price hikes to the consumer.

Las Vegas Sands ($LVS)

Chart courtesy of TradingView.

Las Vegas Sands is a casino that operates in the US, but also has a substantial foothold in Macau. The stock ripped to the upside today on the release of a new Macau gaming bill.

The bill was mostly in-line with investor expectations, but included one bullish change: License holders will no longer require government approval for dividend distributions, and will no longer be required to notify the government about financial decisions that do not have “material impact”. 

Perhaps one investor liked what he heard in the bill, or maybe he/she was trying to capitalize on the momentum. They purchased 13,000 of next week’s 1/21 $46 strike calls, far above the open interest of 1,646. This trade cost the buyer roughly $533,000, and expires just a few days before $LVS reports earnings.

Interested in what Jon had to say about these trades on today’s show? Take a listen below! 

If you want to know more about we explore Unusual Options Activity, then check out our Ultimate Guide to Trading Unusual Options Activity!