Unusual Options Trading Volume Seen in HSY, TKO, and ULTA Stocks

A report highlights unusual options trading volumes in Hershey Company, TKO Group Holdings, and Ulta Beauty. This activity could signal investor sentiment and potential future movements in stock prices for these companies.

Date: 03-10-2024

AI Rating: 6

The report indicates considerable options trading activity in three notable companies: Hershey Company (HSY), TKO Group Holdings Inc (TKO), and Ulta Beauty Inc (ULTA). This type of trading can serve as a gauge for investor sentiment and potential future stock movement.

1. Hershey Company (HSY): The options trading volume for HSY stood at 6,416 contracts, which equals about 641,600 shares, or 56.7% of its average daily trading volume of 1.1 million. A significant portion of this activity was observed in the $195 strike call option for expiration on October 4, 2024, with 2,450 contracts traded representing approximately 245,000 shares. This high volume suggests that investors may be bullish on HSY's performance, anticipating its stock price to rise above this strike price in the future.

2. TKO Group Holdings (TKO): TKO also exhibited considerable trading, with 5,331 contracts exchanged, representing around 533,100 underlying shares and 56.7% of its average daily trading volume of 940,050. The $120 strike put option expiring on March 21, 2025, was particularly significant, seeing 1,007 contracts traded, which alludes to a potential bearish sentiment among some traders anticipating declines in share price.

3. Ulta Beauty (ULTA): For ULTA, the reported volume was 6,634 contracts, equal to 663,400 underlying shares and 54.9% of its average daily trading volume of 1.2 million. The $300 strike put option for expiration on January 17, 2025, had 501 contracts traded, indicating potential skepticism about ULTA's stability in the near future.

Overall, each company showcases distinctly varied sentiments—with HSY leaning bullish and TKO with ULTA showing potential bearish sentiment—as depicted by the options trading volumes. Investors should monitor these developments closely as they could signal future stock price movements.

Stocks: HSY TKO ULTA