How’s this for high hopes on LAZR?
In case you totally missed the momo stock action on Tuesday, Luminar Technologies (LAZR) gapped up more than 30% at the opening bell thanks to a killer deal with Nvidia (NVDA):
Headline via Barron’s, 11/9/2021
Here’s an inside look at the near-instant surge in call activity that hit LAZR on Tuesday…
Check this volume spike…
Just mere minutes after the opening bell Tuesday morning, options volume on LAZR had already exploded to three times the daily average!
In absolute terms, that was nearly 45,000 contracts… and about 82% of them were calls.
(Not sure if I’ve mentioned it lately, but I’m a big, big call option guy – not so much on the puts.)
And it wasn’t just that my scanners were picking up a heavy call bias on LAZR as the stock gapped higher.
There was one specific, swing-for-the-fences strike that was drawing particular attention…
An “Orange Flag” on LAZR
Drilling down, a scan idea signaled on LAZR’s weekly Nov26 expiration $30-strike calls.
Roughly 1,000 contracts traded here on open interest of one – yes, 1 – single contract, so it was easy to deduce these were newly added positions:
LAZR has an earnings report coming up on Nov. 11, before these options expire, which means there’s some binary event risk involved in holding the contracts for any length of time.
This is a name I’ve traded before – with mixed results – and given the orange flag on the play here, this could be a possible day trade for the bold…
But there’s certainly no need to chase this name after the big Tuesday gap rally.
Especially with all the other ideas my eight custom scanners have been tossing out lately.
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Founder, Profit Pregame