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As Disney Leads the Week in Unusual Options Flow, NVDA, AAPL, XPEV Follow

stock market bull and bear
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Many investors brush off or ignore options trading because options are complex and misunderstood. However, many other traders have learned how to “follow the flow.”

In other words, they want to know what the big funds and institutions are doing. When these buyers make their move in the options world, they leave a trail behind them — footsteps in the data.

We can follow those footsteps when looking for unusual options activity.

Our guide is Fintel’s leaderboard of options activity, showing the action in both calls and puts, helping us keep track of it all when we see outsized volume. Let’s look at some of the most interesting action of the past week.

Disney (DIS)

Coming in at Number 1 on our Options Flow Leaderboard is Disney (US:DIS), which is interesting given that the stock continues to dip to 52-week lows. While $87.01 was the prior 52-week low from May, DIS stock has now closed below that mark in seven of the last nine sessions. That’s as shares are down about 57.5% from the all-time high, which was made in November 2021.

Despite the clearly bearish price action, options investors seem torn on the stock’s trajectory.

On July 27, there were two notable put trades that went through on the long side — indicating a bearish position. That’s as someone bought $35.77 million of the January 2024 $160 puts and $3.69 million of the September $110 puts.

There was also a $3.44 million sale of the January 2024 $120 puts tied to the same trade. All of these puts were deep-in-the-money as shares were trading near $85.50 at the time of the trade.

The January 2024 $160 put was active on July 26, too.

That’s as someone paid $37.14 million in premium for this particular put option, but then about 15 minutes later, another trade hit the tape. This time a $108.48 million sale of the January 2024 $160 puts. It coincided with a $10.68 million sale of the September $110 puts (the same strike traded that was pointed out above). Later, another $38.86 million of the January $160 puts were sold, so the trader in this name was quite large and quite active.

Apple (AAPL)

As the biggest stock in the world is gearing up to report earnings on Aug. 3, it’s not surprising to see Apple (US:AAPL) on our list at Number 2. Given that it’s Apple, there were plenty of low-seven-figure options trades placed over the last few days. However, two trades really stand out.

The first came on July 24, as someone bought $38.9 million of the January $175 calls in three separate trades each about five minutes apart. These calls were in-the-money by almost $20 a share at the time of the trade.

The second trade on AAPL stock options was a much deeper in-the-money position. That’s as someone bought $4.53 million of the June 2024 $110 calls on July 28. A few minutes later, they bought another $4.53 million worth of the same calls.

Lucid Motors (LCID)

Lucid Motors (US:LCID) lit up the options leaderboard during the week ending July 21 and traders were back at it last week, too. There was plenty of options flow that stood out — like when one trader scooped up $426,700 worth of the September $8 calls. However, one trade in particular really stood out.

That trade came on July 26, the same day as the trade noted above, but this one was significantly larger. That’s as one trader sold $5.57 million worth of the January 2024 $47 puts and $5.22 million worth of the $37 puts of the same expiration.

Notably, these LCID stock options were deep-in-the-money, with shares trading near $7.10 at the time of the trade.

Perhaps it was investors’ way of speculating on electric vehicle stocks, as XPeng (US:XPEV) has caught fire this week…

Xpeng (XPEV)

Speaking of XPeng, the stock has been downright explosive. There are two factors in play here. First, Chinese EV stocks started the week with a bang on news of Chinese stimulus being put to work to help give the economy a boost. Second, Volkswagen took a stake in XPeng with a $700 million investment on Wednesday.

Shares are up 60.5% this week alone, as XPEV stock works on its fourth weekly rally in the last five weeks. In that span, shares are up 130%.

Interestingly, there were not a lot of trades that stood out specifically. However, one option was red hot, that being the $16 calls that expire on August 11th. Shortly after the session open, someone bought over $935,000 of these calls. Then, 10 minutes later, they bought another $960,000 of these calls.

For what it’s worth, the August $20 calls were also quite active on the long side.

Snap (SNAP)

Snap (US:SNAP) reported earnings earlier this week, falling 14.2% on July 26 as a result.

There was some pretty bullish flow going into the report, perhaps most notably the $7.7 million one trader spent on the August $14 calls. The calls were slightly out-of-the-money, with shares trading near $12.60 at the time. Obviously with the stock’s post-earnings decline though, these calls have been crushed.

On the flip side, less than an hour before the close on July 25 — so just before the company reported earnings — someone sold $1.11 million of the August $13.50 calls.

Nvidia (NVDA)

Given the rise of AI stocks and semiconductor stocks, Nvidia (US:NVDA) has been at the forefront of the market surge. Despite NVDA stock trading pretty well this week — up in four out of five trading days this week — the bear flow was evident.

There was quite a bit of low-seven-figure call sales, which is neutral at best but tends to lean bearish.

Two directional trades that stood out were clear. That’s as one trader bought $6.53 million of the June 2025 at-the-money $440 calls on July 24, which expire in almost two years. The other came a day later on a $4.53 million purchase of the September at-the-money $460 puts.

One other trade stood out, which came on July 26 as someone sold $24.97 million of the July 28 $510 puts and bought $24.94 million of the July 29 $505 puts. In other words, they sold the $510/$505 put spread, which was deep-in-the-money by about $50 a share and expired in just two days.

This article originally appeared on Fintel

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