Mid-session IV Report January 24, 2020

Mid-session IV Report January 24, 2020

The following report is a snapshot of noteworthy changes in stock and option volumes, as well as changes in option implied volatilities. By monitoring this market data, traders can create strategies that capitalize on this often over looked information.​
​
Options with increasing option implied volatility: LK PBYI EAG STMP AM FLR OLED HLF KHC MLCO CAR DPZ MAR WMT DDOG AGN NGG BMY​
​
Popular stocks with increasing unusual volume: LVS SQ LK DIS​
​
​
Luckin Coffee Inc. (LK) January weekly (24) call option implied volatility is at 127, February is at 156; compared to its 32-week range of 53 to 153 after reports of China travel bans related to coronavirus. Call put ratio 1 call to 1.6 puts as shares sell off 7%. ​
​
Starbucks (SBUX) January weekly call option implied volatility is at 37, February is at 24; compared to its 52-week range of 15 to 39 into the expected release of quarter results after the bell on January 28. Call put ratio 1.4 calls to 1 put amid the spread of coronavirus.
​
McDonalds (MCD) January weekly call option implied volatility is at 27, February is at 18; compared to its 52-week range of 13 to 24 into the expected release of quarter results before the bell on January 29. Call put ratio 2.6 calls to 1 put amid the spread of coronavirus. ​

Disney (DIS) January weekly call option implied volatility is at 19, February is at 26; compared to its 52-week range of 12 to 26 after Shanghai Disney Resort was closed until further notice to help China stop the spread of a flu-like virus. Quarter results are expected to be release on February 4. ​

Novavax (NVAX) February call option implied volatility is at 180, March is at 202; compared to its 52-week range of 85 to 350 amid coronavirus into China New Year. Call put ratio 2.9 calls to 1 put. ​

Lakeland (LAKE) February call option implied volatility is at 140, March is at 65; compared to its 52-week range of 20 to 63 amid the spread of coronavirus. Call put ratio 41 calls to 1 put with focus on February 15 and 17.50 calls active as shares rally 9%.​

Alpha Pro Tech Ltd. (APT) February call option implied volatility is at 112, March is at 119; compared to its 52-week range of 40 to 150 as shares rally 11%. Call put ratio 28 calls to 1 put with focus on February 5 and 7.5 calls after recent chatter of mask orders resulting from the Chinese coronavirus.​

​
Allegan (AGN) January weekly call option implied volatility is at 13, February is at 13; compared to its 52-week range of 13 to 34 into the expected release of quarter results before the bell on January 27.​

Whirlpool (WHR) January weekly call option implied volatility is at 54, February is at 35; compared to its 52-week range of 24 to 43 into the expected release of quarter results after the bell on January 27. Call put ratio 2.5 calls to 1 put. ​

The Intersection: Crypto and Wall Street​

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift​

Visa Inc Class A (V) January weekly call option implied volatility is at 27, February is at 21; compared to its 52-week range of 15 to 29 into the expected release of quarter results on January 30. Call put ratio 3.8 calls to 1 put as shares near record high.​
​
Master Card (MA) January weekly call option implied volatility is at 28, February is at 22; compared to its 52-week range of 16 to 31 into the expected release of quarter results on January 29. ​

American Express (AXP) January weekly call option implied volatility is at 19, February is at 19; compared to its 52-week range of 14 to 28 as shares rally on better than expected results. Call put ratio 2.8 calls to 1 put. ​

Discover Financial Services (DFS) January weekly call option implied volatility is at 22, February is at 20; compared to its 52-week range of 17 to 31 as shares sell off on increasing investment spending for emerging payment options.​

Synchrony Financial (SYF) January weekly call option implied volatility is at 18, February is at 19; compared to its 52-week range of 18 to 34 as after Discover Financial Services (DFS) shares sold off increasing investment spending for emerging payment options. ​

Facebook (FB) January weekly call option implied volatility is at 49, February is at 31; compared to its 52-week range of 21 to 43 as Facebook develops the Libra Association. Quarter results are expected on after the bell on January 29.​

Square (SQ) January weekly call option implied volatility is at 33, February is at 34; compared to its 52-week range of 30 to 61 as its business competes with the crypto theme. Call put ratio 3.2 calls to 1 put as shares rally 2.5%.​

PayPal (PYPL) January weekly call option implied volatility is at 48, February is at 30; compared to its 52-week range of 20 to 36 as its business competes with the crypto theme. Quarter results are expected on January 30. ​

MoneyGram (MGI) February call option implied volatility is at 100, March is at 86; compared to its 52-week range of 80 to 191 as its business competes with the crypto theme.​

Ebix (EBIX) February call option implied volatility is at 37, March is at 41; compared to its 52-week range of 35 to 67 as its business competes with the crypto theme.​

Medtronic (MDT) January weekly call option implied volatility is at 25, February is at 16; compared to its 52-week range of 15 to 29 into a company hosted analyst & investor briefing today. Call put ratio 2.4 calls to 1 put with focus on February 120 calls.​
​
Increasing unusual option volume: CSII TSG INO MUSA APT CMX LTHM DGS TEAM EGHT ​
Increasing unusual call option volume: INO LTHM APT DFS TEAM EGHT MDT TRUP ERIC UIS ​
Increasing unusual put option volume: CNX SLM FEZ DFS GNRC PAGP JNPR TSCO WETF TER SYF MLCO​
Options with decreasing option implied volatility: INTC TEAM SWKS AXP DFS TGTX AXSM NFLX TER FAST​
Active options January 24: AAPL INTC NFLX AMD TSLA NIO LK BYND BA SNAP BABA MSFT AMZN FB SQ NVDA LVS BAC MU DIS​