8/31/2023 0 Comments Using unusual options activity![]() ![]() QuantumScape Corporation, headquartered in San Jose, California, is a development stage company focusing on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. Hedge funds have also been weighing in on QuantumScape, with institutional investors increasing their stakes in the company. In the past three months, insiders have sold a total of 471,599 shares. Lovett sold 19,700 shares, while insider Michael O. Insiders have been buying and selling QuantumScape stock. Analysts predict that QuantumScape will post a -0.92 EPS for the current fiscal year. This missed analysts’ consensus estimate of ($0.22) by ($0.04). QuantumScape recently released its quarterly earnings data, reporting an earnings per share (EPS) of ($0.26) for the quarter. QuantumScape’s 12-month low is $5.11, while the 12-month high is $13.86. The company has a current ratio and quick ratio of 22.85, as well as a debt-to-equity ratio of 0.03. It has a market capitalization of $4.75 billion, a PE ratio of -11.94, and a beta of 5.05. The stock has a 50-day moving average of $7.84 and a 200-day moving average of $7.86. Shares of QuantumScape (NYSE:QS) opened at $10.70 on Friday. ![]() ![]() There are many ways to trade these options, and you can customize the scan for your needs. These scans help you see what the ‘smart money’ in Wall St. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $5.83. JUnusual options activity (with step-by-step guide) Recently we’ve added two predefined scans that help you find unusual options volume across the entire market. Three equities research analysts have rated the stock as a sell, while two have assigned a hold rating. Unusual options activity (or UOA) can be a giveaway, so to speak, that there could be a significant move in the underlying stock shortly. Deutsche Bank Aktiengesellschaft also reduced their target price from $10.00 to $8.00. Wolfe Research downgraded the stock from a “peer perform” rating to an “underperform” rating and set a target price of $2.00 for the company. Several research analyst reports have analyzed QuantumScape. This represents a 251% increase compared to the average volume of 17,933 call options. (NYSE:QS) experienced a surge in options trading activity on Thursday, with stock investors purchasing 62,880 call options on the stock. The belief is that “only informed investors would take such large highly levered positions,” the authors said, serving as a predictor of stock returns.QuantumScape Co. The first step in analyzing options to make earnings predictions is to identify unusual activity and validate it using open interest and average volume. Dollar Options are different.for instance an AMZN Call trading 1200 can probably be chased up to 1350 or so. Step 1: Analyze the Chain for Opportunities. If it is a penny or dime or quarter or 50 cent increment option then 50 cents is the standard. The ‘Unusual Option Activity’ segment of CNBC’s “Fast Money: Halftime Report” prompts an “immediate spike in trading volume,” as investors react to commentators pointing to a few stocks with abnormally large option trades earlier in the day, according to the paper. But ultimately it depends on how the contracts are priced. Strong, who conducted the research at the university before joining the SEC last month, declined to comment on the findings. “Our findings suggest that the CNBC coverage of unusual option activity has a destabilizing effect on underlying stock prices and investors cannot profit by simply following the CNBC reporting on the ‘smart money,’” Washington State University finance professor George Jiang and Cuyler Strong of the Securities and Exchange Commission said in a June paper. Options trading may be a good predictor of stock returns - but investors should be wary of trying to profit from the unusual options activity regularly covered by CNBC’s “Fast Money,” according to researchers. ![]()
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