Opendoor Bumps Tesla Off Second Slot for Most Active Stock Option: Options Chatter
$Opendoor Technologies (OPEN.US)$ bumped off $Tesla (TSLA.US)$ from its slot as the second most active stock option as shares of the digital platform for residential real estate tumbled 20% Wednesday, bolstering the case for shareholders to seek some protection against a continued slump.
Shares of Opendoor fell to $2.29, extending their two day decline to 26% after a seven-day winning streak that almost quadrupled their value. The company is giving back some of its gains that were driven by the return of the meme stock frenzy that saw retail investors flocking into some of the most-shorted stocks.
About 1.36 million Opendoor put and call options changed hands. That’s more than triple the 20-day average volume of 437,242 contracts, according to data compiled by Bloomberg. Opendoor’s volume eclipsed Tesla’s 1.34 million contracts, making the digital platform for residential real estate the second most active stock option, just behind $NVIDIA (NVDA.US)$'s 2.21 million.
Put options that give their holders the right to sell the stock at $2 in two attracted the biggest trading activity as the share price approaches that level, boosting the odds that the contract will be in the money before they expire on Friday.
The decline in the share price also pushed out of the money the call option with a $2.50 strike price expiring in two days. The price of that contract tumbled almost 62% to 23 cents amid an exodus that sent the volume soaring to 98,680, more than quadruple the open interest.
Analysts’ average price target on Opendoor was at $1.04, signaling expectations of continued declines for a company that hasn’t been profitable since it became a publicly-traded company in late 2020, when it merged with a special purpose acquisition company (SPAC).
In May, the company reported a net loss of $85 million for the first quarter as revenue declined 2% to $1.2 billion. It had an inventory of 7,080 homes at the end of March, 26% higher than a year earlier and up 9% from the end of December.
$Krispy Kreme (DNUT.US)$'s options volume also climbed, with 270,830 contracts changing hands so far, almost 40X the 20-day average of 6,978 contracts. Call options that give the holder the right to buy the stock at $5 by Friday attracted the biggest volume as the stock initially climbed above that strike price, boosting the appeal of the contract. The party didn't last and Krispy Kreme gave back most of those gains to trade up less than 4.6% at $4.32, sending the value of those call options tumbling.
By 4 p.m., those call options traded down 42% to 55 cents, swinging from a high of $1.90 reached in the first 15 minutes of the trading day.
Share your thoughts on Opendoor and Krispy Kreme in the comments section. Do you expect these stocks to give back all of their gains, or will the meme-craze propel them higher? Let your voice be heard. And if you want to read more options columns like this one on Tesla, or this one on Lucid, follow me here.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Chak : Which Reddit group or which discord your looking and getting this information and posting you are too late now you’re posting this and already the people who made the money they already made the money