Options weekly : 19th July 2024 (2/2)

Notable Unusual Options Activity Seen on the week ending 19th July 2024

Jul 20, 2024

Because this week has been so special we are broke this newsletter into 2 parts for this week. Here is the part 2

Semi, SPY and QQQ

We started noticing very large bearish flow on SMH, amplified quite a bit early this week. This kinda of put us on alert to as to something is due. But its not just 1 ETF flow that does it. We were seeking more confirmations of this sentiment shift.

SQQQ solidified out thesis and served us as an early sign

SOLX sentiment turned from highly bullish to mixed

Again as I mentioned above not 1 flow does it. We always seek more confluences. Be it other related ETFs or Stocks that are part of that ETF. It’s not an exact science, you have to look beyond and try to find gather more evidence to support your thesis

Overall flow and charts definitely put us on alert.
Along with the Flow, in our Jarvis Alerts community we use charts quite a lot. Following comments were posted after market close on 15th July

The Chart was buying bearish divergences on 4h chart. Something we never take lightly, may not be immediately actionable but these divergences play out. Our job is to notice these subtle signals and align ourselves in the path of money or at the very least get out the path of a freight train.

SPY

SBUX

This one is particularly difficult to identify. However there were breadcrumbs all over the Option Flow and Chart.

Chart made a double bottom and bounced, some whale got in on 2000 contacts for Sep and paid whopping 690K . Next few days the only flow came in was bullish and supporting. 85C and 80C, not as big though.

Any bottom fisher would have paid attention to this flow and noticed that flow into the year end is turning green as the stock has been destroyed literally.
Don’t beat up yourself if you did not catch it. This was a tough one. But hell, someone always knows and they made HUGE money on this move.

Chart:

Crypto Bitcoin, MARA RIOT MSTR COIN CLSK

While QQQ and SPY where having really bad days in the market with VIX Rampaging (if you reached this far in the newsletter you know how we were able to anticipate this move) anyways, while the major indexes were having bad days in the market the FLOW on Crypto names stayed very very strong. I have been covering it in previous newsletters too. The trend continued.

Flows: