MA Option Activity Rising With Retail Spending

  • 5,000 19 FEB 21 $350 calls mostly BOT @ $3.50 to $4.45 against open interest of 3,578
  • 3,500 18 JUN 21 $350 calls BOT @ $22.30 against open interest of 1,546
  • 3,500 18 JUN 21 $390 calls sold @ $8.89 against open interest of 270

The first trade was a long option with a breakeven near $355. The last two entries were part of a long call vertical that reaches max gain with a close above $390 by exploration. A move to that level by June would pace this stock at a new all-time high.

MA Technicals

Since August 11, 2020, the price of MA has remained relatively rangebound. With few exceptions that price has remained within the range of $320 to $355. The price briefly closed above the $355 resistance only to fall back throughout January. Despite selling off a little following their earnings report, the company has rallied since, forming a higher low on February 9.

(Click on image to enlarge)

After gapping higher on Thursday, the price traded lower today. However, the price finished off of the lows and closed higher than Thursday’s low. That allowed the price to hold the projected area of support based on Thursday’s low on a gap day.

Conclusion

Looking at the chart and analyzing the option trades, you can see the convergence of the two types of analysis. While the price has been consolidating for many months, the recent spending data and option activity could help be a catalyst for a bullish breakout in the coming weeks.

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