This note highlights a select group of stocks showing the most unusual — and highly directional — options activity.
The goal is simple: follow the big money and trade in the direction of the underlying trend.
Here is the list of Unusual Options activity from January 20:
*Click to enlarge view
PDD Holdings Inc $PDD - Despite China’s early-year momentum, PDD hasn’t kept pace and looks close to completing a bearish topping pattern.
One trader placed an aggressive bearish bet, buying 1,000 contracts of the 5/15 $55 puts — a bold move given the stock is trading near $100.
Palantir Technologies Inc $PLTR - Even with quieter chatter around this cycle darling, bullish activity continues.
One trader purchased 1,250 contracts of the 11/20 $200 calls, giving the position plenty of time to play out through November.
Red Cat Holdings Inc $RCAT - The top performer today, up over 80% in the past month, is seeing more bullish flows. One buyer grabbed 499 contracts of the 4/17 $27 calls. With the stock trading near $15, this strike is roughly 80% out-of-the-money — signalling a bet on a major rally in Aerospace & Defense.
