As election week unfolds, traders are positioning themselves with large-scale options bets across tech, biotech, and financial sectors.
The options flow from yesterday reveals some hefty premiums and directional plays that signal caution — and perhaps a bit of risk appetite.
With several notable trades across major tickers like QQQ, MU, and NVDA, let’s unpack what this could mean as investors brace for the market’s reaction to election results.
In the past 24 hours, we’ve seen options activity picking up in some well-known tickers, signaling high confidence — or high anxiety — among traders. Here’s a closer look at some standout trades that shed light on investor sentiment.
QQQ (Invesco QQQ Trust) — Massive Put Position for March 2025
Premium: $10.2 million. Type: Block. Details: A March 31, 2025, put with a 480 strike
This QQQ trade stands out with a jaw-dropping $10.2 million premium, placed on a 480 strike put option expiring in early 2025. This represents a long-term, bearish play on the NASDAQ-100, a tech-heavy index that often leads the charge in bull markets. The timing and size suggest that the trader could be hedging against a more prolonged downturn, perhaps factoring in uncertainty from both the election results and the anticipated economic ripple effects heading into 2025.
MU (Micron Technology) — June 2025 Put
Premium: $4.8 million. Type: Block. Details: June 20, 2025, put with a 95 strike
Another substantial bearish bet shows up on MU, with a $4.8 million premium for a June 2025 put at a 95 strike. Micron, a leader in memory and storage solutions, often mirrors tech sentiment and economic conditions. This position aligns with the QQQ put in suggesting a broad tech pessimism that extends well into the future. Considering this is a block trade, it could indicate institutional activity, perhaps a fund manager hedging against potential downside in the semiconductor space, where volatility tends to spike with political uncertainty.
NVDA (NVIDIA) — November 2024 Calls and Puts
Premiums: $2.6 million and $1.9 million. Type: Sweep. Details: November 8, 2024, call with a 138 strike, and November 22, 2024, put with a 138 strike
NVIDIA saw two intriguing trades within weeks of each other: a call and a put sweep, each carrying roughly $2 million in premium. These trades capture opposite sentiments but focus on similar strike levels around 138. The call expiring on November 8 and the put on November 22 suggest that traders see potential for big moves in NVIDIA in both directions, right around the election. This could reflect heightened expectations of volatility in a stock that has become synonymous with the AI boom. If election results stir the market, NVIDIA might just be primed for significant price swings.
Several trades on the board align their expirations with mid-2024, hinting at a shorter-term election-centric approach. Let’s take a look at a few of these plays:
AAPL (Apple) — June 2024 Calls
Premium: $2 million. Type: Sweep. Details: June 18, 2024, call with a 222.42 strike
This $2 million bet on AAPL calls with a 222.42 strike implies optimism for Apple’s performance by mid-next year. Given Apple’s status as a market leader, this could be a play on general market strength, potentially anticipating that election outcomes will bring market-friendly policies or a rebound from any pre-election jitters. Apple’s inclusion in these notable trades also speaks to confidence in its product pipeline and brand resilience, even during potential economic turbulence.
TSM (Taiwan Semiconductor Manufacturing) — February 2024 Calls
Premium: $1.9 million. Type: Block. Details: February 16, 2024, call with a 195 strike
TSM options activity picked up with a $1.9 million premium call at the 195 strike, expiring in February 2024. This is one of the more immediate bets among today’s unusual options activity. Given TSM’s pivotal role in global semiconductor manufacturing, the call could reflect optimism around the supply chain’s stability or Taiwan’s geopolitical stability. If the trader expects diplomatic developments or election-related policy shifts that positively impact the chip sector, this could yield a strong upside play for early 2024.
Biotech & Pharma Plays: SAVA and AVGO Join the List
SAVA (Cassava Sciences) — November 2024 Call
Premium: $1.6 million. Type: Block. Details: November 29, 2024, call with a 40 strike
With a $1.6 million premium for a November 2024 call, SAVA traders are betting on upside for this biotech company. Cassava Sciences, focused on neuroscience therapies, could be gearing up for developments that spark investor interest. With healthcare often a hot topic during election cycles, the timing of this position may suggest that traders see potential for regulatory or funding shifts that could benefit small biotech firms.
AVGO (Broadcom Inc.) — September 2025 Calls
Premium: $3.3 million. Type: Block. Details: September 19, 2025, call with a 620 strike
AVGO caught our attention with a $3.3 million premium bet on a September 2025 call at a 620 strike. This is a longer-term play that points to optimism in the semiconductor space. Broadcom’s significant role in connectivity and infrastructure makes it sensitive to both technology cycles and federal infrastructure spending. A positive election outcome that benefits tech and infrastructure could validate this bullish call position.
Wrapping It Up
This unusual options activity chart shows a clear divide in sentiment. While some traders lean heavily on tech-sector puts, perhaps hedging against broader volatility, others are betting on the upside in individual stocks with strong fundamentals or unique market positions. The duality in trades on NVDA, with both puts and calls, underscores how traders are hedging their bets and playing both sides in case of market surprises post-election.
Election week brings its share of uncertainties, but this round of options activity reveals a strategy of spreading risk while betting on volatility — a classic move when big unknowns loom over the market. Whether these traders emerge as heroes or see their hedges hit hard will be determined by the market’s read on the election results and their impact on U.S. policy. Keep a close eye on these positions, as they could set the tone for market sentiment into 2024.
As always, stay tuned for more insights, and keep your risk in check!
