Pete’s Delivering Unusual Options Activity on Four Fresh Stocks

Market Rebellion Co-Founder Pete Najarian was on CNBC’s Halftime Report today to deliver the news on some unusual options activity, and what he did to position for it.

The first of those four stocks with unusual options activity was Lucid Motors ($LCID). Lucid has been a recurring character in our coverage of unusual options activity for multiple reasons. The entire EV trade has been on fire after the passing of an infrastructure bill that promises to support the buildout of over 500,000 electric vehicle charging stations nation wide. That’s exponentially more than exist currently. Lucid itself has also been on a tear higher, likely driving momentum traders to test the boundaries of how long this battery’s charge can last.

Next up to bat was United Parcel Service ($UPS). UPS has been outperforming rival Fedex ($FDX) for months. Option buyers are betting that this outperformance will continue into the busy holiday season. This activity was particularly notable because UPS is not a name that typically receives a lot of option volume. For instance, from 11/15 through 11/18, a total of 943 calls were bought in this delivery stock. Compare that to over 16,000 calls bought today, most of which in a single print. Pete said he was jumping in on this trade because UPS has been really delivering the results in the form of outperformance in comparison to its peers.

Pete also called out the entire financial sector ($XLF) and Medtronics ($MDT), which saw interesting option activity in the form of a trade structure we don’t often talk about — bullish combinations. This involves offsetting the purchase cost of call options with cash secured puts. This allows the trader to receive immediate upside participation while negating some risk to the downside, in exchange for a promise to purchase the stock if it expires below the short put strike.

Take a listen to what Pete had to say about the unusual options activity he saw today, and what he’s doing to position his portfolio.

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