After pouring over June’s job statistics, it’s evident that America’s economic engine remains robust. In light of the 206,000 new jobs created last month, investors are also eyeing the 4.1% unemployment rate, a figure not seen since October 2021. The implications for interest rates remain cloaked in uncertainty.
While markets resume normal trading hours after the Fourth of July festivities, there’s a buzz around unusual options activity from Wednesday’s trading session. Single-letter stock symbols have taken the spotlight with nine unusually active options across four companies.
Among these options, three shine brightest for potential profitable trades entering deeper into July.
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An Intriguing Bet With Promising Returns
First on the radar is Unity Software (U), a platform empowering developers to create, run, and monetize games across various platforms. Despite a staggering 60% plunge in its stock value this year, the company shows promise with an impressive 172% increase in adjusted EBITDA from Q1 2023.
Recent leadership change brought Matt Bromberg, an industry veteran with a track record of success, to the CEO position. While uncertainties loom, Bromberg’s appointment hints at a potential turnaround.
Opting to sell the Sept. 20 $33 strike put at a bid price of $16.85 presents a potential profitable opportunity. However, caution is advised, as the risk amplifies drastically in case of a steep stock decline.
Ford Vrooms Back into Focus
Ford (F) is back in the spotlight with two intriguing puts on Wednesday’s trading session, signaling a potential rise against General Motors (GM). Market observers predict a closing performance gap between these auto giants, emphasizing Ford’s robust financials and growth trajectory.
Embarking on a capital allocation strategy centered around special dividends, Ford’s stock momentum presents an opportune moment for investors. Selling the $13.82 strike put could offer a suitable entry point for buyers, with promising returns, even if the stock trends out of the money.
Visa vs. U.S. Steel: A Tale of Two Options
Two companies, Visa (V) and U.S. Steel (X), offer three active options, with Visa taking the lead as a preferable long-term investment choice. Despite modest gains in 2024, Visa’s technical indicators suggest a short-term weakness, prompting caution from investors.
With the $285 put on Visa expiring in two weeks, investors walk a tightrope with the stock needing a marginal gain to stay profitable. A strategic bet between $268.99 and $269.60 could yield positive results, based on historical stock performance.
The risk-reward equation seems favorable in this scenario, beckoning cautious optimism.