May 30, 2025
Stock on Watch – Unity Software (U) and Peloton (PTON)
In the last two weeks there has been a bit of a “junk stock” rally as stocks like GME/AMC and others have raced higher, and attracted big call buying. And while GME and AMC are true junk stocks, “not as bad” junk and former meme stocks U and PTON have also rallied and have seen big call buying. Here are some of those trades in U and PTON:
Today: Buyer of 20,000 Unity Software (U) January 30 Calls for $5.25 – Stock at 27
Today: Buyer of 10,000 Unity Software (U) June 30 Calls for $1.50 – Stock at 27
Wednesday: Buyer of 10,000 Unity Software (U) January 30 Calls for $3.25 – Stock at 23.5
5/20: Buyer of 50,000 Peloton (PTON) July 7 Calls for $0.36 – Stock at 6.15
5/21: Buyer of 20,000 Peloton (PTON) July 7 Calls for $0.65 – Stock at 6.70.
GME, AMC and PTON all rallied last week, but have since then given up some of their gains.
U, on the other hand, just got going this week, and is now trading at a multi-month high today and call buying is wildly bullish, targeting nearly every expiration cycle.
Chasing U today is tough.
On the one hand, call buying is wild today as calls are outpacing puts on a ratio of 11:1, and the stock is trading higher by 17% on the day. This leads me to believe the stock could go much higher.
On the other hand, we saw similar option action in GME/AMC/PTON late last week, and since then the momentum has died and the stocks have given up most of their gains.
Stepping back, I’m not going to get involved in U as the chase is not easy. However …
If you have a bit of gamble in you and some “play money” and want to get involved with this momentum game, I wanted to bring this call buying activity to your attention.
May 27, 2025
Weekly Update
As I do periodically over long holiday weekends, I stepped away from the “typical” Monday morning update and spent time with the family. Here is a shorter version of usual weekly update, focused entirely on our current open positions.
Freeport-McMoRan (FCX) November 43 Calls – FCX mostly chopped around last week along with the market, but did see several big call buys looking for the stock to break out in the coming months, as noted below:
Wednesday - Buyer of 5,500 Freeport McMoRan (FCX) June 40 Calls for $1.01 – Stock at 38
Friday - Buyer of 3,000 Freeport McMoRan (FCX) July 44 Calls for $0.56 – Stock at 38.
Grab Holdings (GRAB) January 5 Calls (exp. 2027) – Late last week I rolled our January 5 call expiring in 2026 out to 2027 as the trend in options trading in GRAB has clearly been to give this stock time. Below is just one of many of those 2027 buys/rolls:
Thursday - Buyer of 4,500 Grab (GRAB) January 4.5 Calls (exp. 2027) for $1.75 – Stock at 5.
Marvell (MRVL) June 115 Calls – With just weeks until expiration, this MRVL trade is almost surely going to expire worthless, unfortunately.
Starbucks (SBUX) January 110 Calls – SBUX continues to chop around aimlessly and my patience with this position is starting to run out … though admittedly this trade still does have eight months until expiration.
Robinhood (HOOD) December 50 Calls – HOOD stock looks spectacular as it makes a run at its multi-year high, and option activity remains very bullish including this buy from Wednesday:
Wednesday - Buyer of 4,300 Robinhood (HOOD) January 75 Calls for $10.90 – Stock at 64.5.
Uber (UBER) December 90 Calls – UBER pulled back marginally late last week on another rumored Tesla autonomous car headline. That being said, the stock hardly crumbled on this news and option activity remains wildly bullish.
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