3 Stocks Rising Amid Red-Hot Call Activity

Lucid Group is one EV stock on the upswing

Digital Content Manager
Jan 12, 2023 at 1:58 PM
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After spending the morning churning around breakeven, stocks have turned higher today in response to upbeat consumer price index (CPI) data. Among the more notable names making moves today are steel stock Cleveland-Cliffs Inc (NYSE:CLF), electric vehicle upstart Lucid Group Inc (NASDAQ:LCID), and entertainment giant Walt Disney Co (NYSE:DIS).

Cleveland-Cliffs Stock Upgraded

This morning, Morgan Stanley upgraded Cleveland-Cliffs stock to "overweight" from "equal-weight," and hiked its price target to $26 from $13.60. The analyst in coverage noted that higher fixed annual steel price contracts could help the company see "robust" free cash flow. Last seen up 5.6% at $20.30, the stock is trading at its highest level since early June and is looking to reclaim its 320-day moving average. CLF has added 40%. over the past six months.

Options traders are chiming in, with 58,000 calls and 23,000 puts traded so far today, which is double the average intraday volume. The most popular contract is the weekly 1/13 20.50-strike call, followed by the 20-strike put in that series, with new positions being opened at both.

Delivery Beat Boosts Lucid Group Stock

LCID is up 2.4% at $8.12 at last check, after the EV name delivered 3,349 vehicles in the fourth quarter, more than analyst estimates. Plus, the company exceeded its annual guidance with 7,180 deliveries in 2022. The shares are bouncing off a Jan. 6, all-time low of $6.09, and just yesterday toppled pressure at the 20-day trendline. LCID still carries an 82% year-over-year deficit, though.

Bullish bets are running at double the volume that's typically seen at this point, with 95,000 calls across the tape so far today, compared to 40,000 puts. While the January 2023 10-strike call is seeing the most action, options are currently being opened at the weekly 1/13 8.50-strike call. 

Nelson Peltz Sizing Up Walt Disney

Activist investor Nelson Peltz is causing quite the stir today as he fights for a board seat at Walt Disney. Peltz is reportedly discontent with streaming overspending, the purchase of 21st Century Fox, and failed succession planning with his move following CEO Bob  Iger's return.
The news seems to be boding well for Walt Disney stock, which was last seen up 4% to trade at $100.19. Today could mark the security's first close above the $100 region since November, and would help DIS chip away at a 36.4% year-over-year deficit. Call traders are also chiming in, with 106,000 calls exchanged, which is double the intraday average volume. Most popular by is the 1/13 100-strike call, where positions are being bought to open.

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