Year-End Price Downgrades
A violent rebound on Friday, followed by a sharp short-squeeze surge on Monday – last week's series of coincidences led to a pullback.
However, institutions aren't viewing this pullback very positively. Significant sell call block trades have emerged for some stocks, with expiration dates at year-end. The strike prices suggest high volatility is expected from now until year-end:
Expected to trade below $200 until mid-December: Block trade selling the $200 call $NVDA 20251212 200.0 CALL$ and hedging by buying the $220 call $NVDA 20251212 220.0 CALL$ .
Reduced expectations for reaching $220 by year-end: Block trade closing the Dec 19th $220 call $NVDA 20251219 220.0 CALL$ and rolling into buying the Dec 12th $205 call $NVDA 20251212 205.0 CALL$ .
Additionally, very far-dated sell call at $300: $NVDA 20280121 300.0 CALL$
Extreme bearish positioning emerged due to Friday's sharp drop; needs further observation.
$Advanced Micro Devices, Inc.(AMD)$
Stock price corrected significantly, dragged down by comments from OpenAI.
The large block of bullish calls targeting $300 for Nov 21st saw substantial closing/unwinding on Friday $AMD 20251121 300.0 CALL$ .
This week's bull call spread: Sell $AMD 20251114 250.0 CALL$ / Buy $AMD 20251114 260.0 CALL$ . Suggests the stock is expected to oscillate roughly between $220 and $260.
QQQ also seeing lowered year-end expectations: Block trade closing the $675 call $QQQ 20251219 675.0 CALL$ and rolling to sell the $645 call $QQQ 20251219 645.0 CALL$ . Implies an expected QQQ price below $645 by year-end.
A large sell call block trade emerged Friday for the $335 strike $GOOGL 20251219 335.0 CALL$ . This could be a naked short or covered write. Suggests an expected stock price below $335 by year-end.
This week's bull call spread: Sell $290 call $GOOGL 20251114 290.0 CALL$ / Buy $292.5 call $GOOGL 20251114 292.5 CALL$ . Suggests the stock is expected to oscillate roughly between $270 and $290.
Additionally, a large sell put block trade in GOOG: $GOOG 20251226 280.0 PUT$
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