Institutions took some pain in rolling their covered call position higher, likely re-evaluating last week's strikes after the unexpected rally:
Bought $NVDA 20241018 145.0 CALL$
Sold $NVDA 20241018 138.0 CALL$
This widens the strike range, setting next week's upside target around $140. Can consider selling calls around those levels for next week.
I actually hope institutions keep being this aggressive with their rolls - it would allow Nvidia to keep rallying week after week.
What caught my eye was a large at-the-money put buying flow in $STMicroelectronics (STM)$: $STM 20241018 27.0 PUT$ . Possibly a hedge ahead of next week's $ASML (ASML)$ earnings. Will monitor for now, as a major ASML miss would likely have broader semiconductor implications beyond just this single flow.
Pinduoduo down 6%, seeing a 10,000 contract opening sale of the $142 puts expiring November 22nd. This implies expectations for PDD to remain above $142, or the stock above $132, by that date:
As mentioned before, selling at-the-money puts is effectively a bullish stance. So this large flow doesn't seem to view today's selloff as the end of the China bull run.
For both KWEB and FXI today, the focus was on buying straddles, like:
Bought $KWEB 20250117 31.0 PUT$
Bought $KWEB 20250117 43.0 CALL$
Or
Bought $FXI 20241220 30.0 PUT$
Bought $FXI 20241220 38.0 CALL$
Sold $FXI 20241220 42.0 CALL$
With room for both upside and downside from current levels, straddles allow trading both scenarios.
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