To The Moon

Most of the earnings season has passed, and the $S&P 500(.SPX)$ is also at a relatively high level, indicating that there may be some divergences at the moment.

Divergence implies that it is difficult to form a one-sided market. There may be a tendency for consolidation before one side gains an advantage. From some unusual options movements on November 27th, we can identify some stocks that may experience volatility.

$Charles Schwab(SCHW)$ has been closely observed by the market regarding its liquidity after the Silicon Valley Bank incident. Its two recent earnings reports had both positive and negative aspects, and it has been consolidating throughout November without any upward or downward momentum.

The current price is $56, but even the $54 put options (December expiration) have been heavily closed out, indicating that there may be greater volatility in the short term. Considering that investors have incurred significant losses in this stock year-to-date, it is also possible that there will be year-end tax loss selling in December. Of course, it is currently above several moving averages that have recently reversed, which could lead to further upward movement, resulting in a volatile market.

Similar situations can be found in $Cliffs Natural Resources(CLF)$ $Spirit Airlines(SAVE)$.

$Keurig Dr Pepper Inc(KDP)$ ‘s November performance has made up for the significant decline in October. Due to changes in fundamentals, expectations for consumer goods may have shifted, leading to a large number of investors closing out their January-expiring $33 calls at almost break-even prices, indicating optimism for continued breakthroughs.

A similar situation can be seen in $Affirm Holdings, Inc.(AFRM)$

In addition, there has been a significant closing of in-the-money puts for $Pinduoduo Inc.(PDD)$ because the company is scheduled to announce its earnings today.