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headlined by QQQ's stunning $35M protective put buying as tech hits all-time highs, Eli Lilly's $7M complex calendar betting on Medicare obesity drug revolution, and Datadog's $4.5M strangle positioned for explosive binary move and more...
š November 6, 2025 | š„ DEFENSIVE POSITIONING: $35M QQQ Protective Puts + LLY's $7M Medicare Expansion Calendar + DDOG's $4.5M Binary Catalyst Strangle | ā ļø Tech Hedging, Obesity Drug Empire, China Stimulus Uncertainty & Bitcoin Mining Crisis Dominate
š„Ā DEFENSIVE MEETS OFFENSIVE:Ā We just trackedĀ $65.4 MILLIONĀ in sophisticated options activity across 10 strategic positions - headlined by QQQ's stunning $35M protective put buying as tech hits all-time highs, Eli Lilly's $7M complex calendar betting on Medicare obesity drug revolution, and Datadog's $4.5M strangle positioned for explosive binary moves. This isn't random flow - this is institutions simultaneously hedging tech exposure at peaks, betting on pharmaceutical empire expansion, managing China stimulus uncertainty, and protecting against
mining economics collapse.Total Flow Tracked:Ā $65,400,000 š° Most Defensive:Ā QQQ $35M protective puts (largest single-day tech hedge we've tracked this quarter!) Pharma Empire Play:Ā LLY $7M Medicare expansion calendar spread targeting $1,000+ grind Binary Volatility Bombs:Ā DDOG $4.5M strangle + MARA $2.9M catastrophe protection = $7.4M explosive setups Bitcoin Mining Crisis:Ā MARA $2.9M + WULF $1.7M = $4.6M mining sector repositioning M&A Transformation Bets:Ā CDE $1.4M + PYPL $5.8M = $7.2M corporate evolution plays
Someone sold $2M worth of short-term $80 calls (5,000 contracts) at 10:33 AM - closing out position that captured Procore's 14% post-earnings explosion. With stock at $81.64 and new CEO Ajei Gopal taking helm in 4 DAYS (Nov 10), this is textbook institutional profit-taking.Ā Key context:Ā PCOR crushed Q3 ($339M revenue vs $328M consensus, $0.42 EPS vs $0.32), raised FY2025 guidance for third consecutive quarter, and margin expanded 400bps YoY to 17%. But the 669x unusual score exit signals concerns about CEO transition execution risk (Gopal lacks construction industry background) and whether AI product monetization at Groundbreak Nov 20-21 justifies premium valuation (52.1x PE vs peers at 16.6x). The $80 strike sits at massive 5.17B gamma resistance - market makers will sell into rallies. Watch Gopal's first strategic communications closely and Nov 20-21 Groundbreak for AI product reception (Copilot, Insights, Agents launches could add $45M+ ARR).
Closed short $20 calls (someone removing upside cap before facility completions!) with Nov 17 earnings just 11 days away. This isn't bearish - it's repositioning ahead of major catalysts.Ā The story:Ā TeraWulf holds $10.5B in contracted AI/HPC revenue backed by Google's 14% stake via warrants. CB-1 facility (300 MW) completes Q1 2025, CB-2 facility (270 MW) hits Q2 2025 - combined 570 MW of zero-carbon nuclear power at <$20/MWh makes WULF the lowest-cost Bitcoin miner in North America. Google partnership provides customer anchor for HPC pivot beyond pure mining. Nov 17 earnings will reveal facility construction progress, Bitcoin production ramp (100 MW Nautilus expanding to 270 MW), and potential HPC revenue guidance. Stock up 254% YTD but consolidating $14-18 range - removing short $20 calls suggests expectation of breakout above $20 on facility news. Risk: Construction delays or cost overruns could disappoint, Bitcoin mining profitability compressed post-halving.
Massive 4,767 contracts of $12.50 Jan 2026 calls ($1.97 in-the-money, 14 months to expiration) targeting Coeur Mining's $8.7B M&A supercycle.Ā Two deals reshaping the company:Ā (1) $1.7B SilverCrest acquisition closing Q1 2025 adds high-grade Las Chispas mine with costs 40% below corporate average, contributing to 2025 target of 21M oz silver production. (2) $7B New Gold mega-merger closing H1 2026 creates ~$20B combined entity producing 1.25M gold equivalent ounces with $3B EBITDA and $2B free cash flow targets. The 1,255x average size bet comes as gold trades near $2,648/oz (+30% in 2024) and CDE already up 72% YTD from Rochester mine expansion success.Ā Critical milestones:Ā Q1 2025 SilverCrest close, Q1 2026 New Gold shareholder votes (need 66ā % approval - failure would be catastrophic), and H1 2026 New Gold transaction completion. The $12.50 strike aligns perfectly with 3.29B gamma support level - sophisticated technical analysis. Risk: Integration complexity on two simultaneous deals, valuation at 52.1x PE after 208% rally, precious metals price correction.
QQQ Bull Call Spread ($615/$630 Dec 2025):Ā Ride tech momentum into earnings season with defined risk. Buy $615 calls, sell $630 calls for net $6-8 debit. Max profit $7-9 if QQQ breaks through $630 gamma wall on strong Magnificent 7 earnings. Risk: $600-800 max loss if tech sells off.Ā Patience required:Ā Don't chase current levels - wait for any dip to $605-610 for better entry.
DDOG Long Strangle Replication ($190 calls + $170 puts Mar 2026):Ā Copy the $4.5M institutional bet at smaller scale. Cost ~$33.60 per strangle. Profit if DDOG moves above $213 or below $157 - perfect for binary catalysts (OpenAI revenue, GitLab decision, S&P inclusion, DASH conference).Ā Risk control:Ā Size at 1-2% of portfolio max, understand 100% loss possible if stock stays range-bound $170-195.
MU $340 LEAP Calls (Dec 2026):Ā Pure leverage to AI memory supercycle thesis. If HBM4 qualification comes through and data center recovery materializes, these print massive returns. Current ~$18-22 per contract could be worth $80-120 if MU hits $400+ on AI boom.Ā Risk:Ā Complete loss if Micron's HBM catch-up fails vs Samsung/SK Hynix dominance. Only for those who can stomach 100% loss.
PCOR Bull Call Spread ($85/$95 Feb 2026):Ā Target post-CEO transition rally if Gopal executes well. Buy $85 calls, sell $95 calls for $4-5 debit. Captures upside from Groundbreak AI product launches (Nov 20-21) and Q4 earnings beat while defining risk. Wait until after Nov 21 short call expiration for IV to normalize.Ā Patience:Ā Don't enter until CEO transition clarity emerges week of Nov 10-14.
PYPL Diagonal Spread ($950 calls Jun 2026 / $970 calls Dec 2025):Ā Reduce cost basis through quarterly short call rolls while maintaining long exposure. Collect $3-5 per quarter rolling short strikes = $12-20 total premium over 7 months. If PYPL reaches $1,000 in June 2026 on Fastlane success, effective cost basis drops to $20-30 per spread.Ā Risk control:Ā Close short calls if stock rallies >$965, roll to higher strikes.
LLY Bull Call Spread ($960/$1,020 Jun 2026):Ā Play the Medicare expansion and orforglipron launch with defined risk. Net debit ~$45-50, max profit $10-15 if LLY breaks $1,020. Entry on any dip to $920-930 support improves risk/reward significantly.Ā Key dates:Ā Feb 11, 2026 Q4 earnings for guidance, June 10-11 DASH conference for product reception, July 2026 Medicare implementation.
QQQ Cash-Secured Puts ($600 strike Dec 2025):Ā Sell puts at strongest gamma support (239B exposure) and collect ~$8-10 premium per contract. If assigned, own QQQ at $600 (2.3% below current) - solid entry point with S&P inclusion providing floor. Keep full premium if QQQ stays above $600 through December.Ā Risk management:Ā Reserve $60,000 per contract, understand assignment risk in tech selloff.
LLY Deep Put Sales ($800 strike Jan 2026):Ā Emulate the institutional strategy at more conservative strikes. Collect $15-25 premium on 14.5% out-of-the-money strike sitting at deep gamma support. Only assign risk if comfortable owning LLY at $800 ($80,000 per contract). Exit before Feb 11 Q4 earnings if want to avoid event risk.Ā Alternative:Ā Sell $800/$750 put spreads to define max risk at $5,000 per spread.
MARA Bear Call Spread ($18/$20 Dec 2025):Ā Fade bounces into resistance. Sell $18 calls, buy $20 calls for ~$0.80-1.00 credit. Max profit $80-100 if MARA stays below $18 (massive 26.8B gamma resistance makes breakout unlikely). Stock failed to hold gains after record earnings - sentiment broken.Ā Timing:Ā Wait for bounce toward $17-18 resistance for optimal entry.
Wait-and-See Approach - Priority:Ā Let binary catalysts resolve before committing capital. Too many unknowns: QQQ Magnificent 7 earnings (late Jan-Feb), LLY Medicare implementation (July 2026), DDOG OpenAI impact (Feb 13 Q4 earnings), KWEB China Q4 results (Feb-Mar), MARA Bitcoin direction (2026 bear market forecasts), PCOR CEO transition (Nov 10), CDE M&A execution (Q1 2025 SilverCrest close).
QQQ / Tech Exposure Alternative:Ā If must have tech exposure, wait for pullback to $600-605 (strong gamma support, 2-3% off current). Or use bull call spreads with defined risk vs buying stock outright. Even better: Wait for Q1 2025 earnings season to confirm AI monetization thesis before aggressive positioning.
Avoid High-Volatility Names:Ā MARA (80.5% volatility, -48.81% max drawdown), DDOG (50.1% volatility, binary catalysts), KWEB (China regulatory uncertainty). These require active monitoring and high risk tolerance - not suitable for hands-off investors.
Stock Picking Over Options:Ā For CDE, PYPL, WULF - if thesis resonates, buy stock in small positions (2-3% of portfolio) rather than options. Removes time decay risk and gives flexibility to hold through volatility. Scale in on dips: CDE at $13-14, PYPL at $62-65, WULF at $14-15.
Risk Control Emphasis:Ā Position sizing is EVERYTHING. No single trade should exceed 5% of portfolio. Options trades should be 1-3% max given leverage and time decay. Set mental stops: PCOR at $75, QQQ at $590, LLY at $900, PYPL at $60, MARA at $15. Cut losses quickly if thesis breaks.
Patience Pays:Ā The best trade is often the one you DON'T make. Wait for technical support levels, post-earnings volatility to settle, catalyst resolution. Bull markets reward patience - don't chase FOMO into extended positions. Remember: QQQ up 20% YTD, LLY near highs, CDE up 72%, WULF up 254% - these need healthy consolidation before next leg.
Position Sizing is Everything:Ā No single options trade should exceed 1-3% of your portfolio. Defined-risk spreads allow larger notional exposure while capping downside. Cash-secured puts require reserving full strike value ($60K-$140K per contract for QQQ/LLY).
Volatility Cuts Both Ways:Ā High IV environments (MARA 80.5%, DDOG 50.1%) create rich premium collection opportunities but also explosive downside risk. Time decay accelerates on long options - don't buy options expiring in <30 days unless playing immediate catalyst.
Binary Events = Binary Outcomes:Ā Earnings, FDA decisions, M&A votes, product launches can gap stocks 10-20% overnight. Use spreads to define risk around these events. Never sell naked options (unlimited risk) into binary catalysts unless you can handle assignment.
Technical Levels Matter:Ā Gamma support/resistance zones are real - market makers hedge by buying dips and selling rallies at these strikes. QQQ $600 support (239B gamma), LLY $1,000 resistance (7.36B gamma), MARA $18 resistance (26.8B gamma) will act as magnets for price action.
Correlation Risk:Ā QQQ exposure = concentrated Magnificent 7 tech bet (40%+ of fund). KWEB = China regulatory risk across all holdings. Bitcoin miners (MARA, WULF) = pure crypto leverage. Diversify across uncorrelated strategies.
Exit Plans Are Mandatory:Ā Set profit targets (take 50% off at 2x return) and stop losses (exit at -50% on spreads, -25% on stock). Don't marry positions - thesis can change overnight. Be willing to cut losers quickly.
Patience Over FOMO:Ā Markets reward waiting for technical support levels, post-earnings volatility settling, and catalyst resolution. The best traders make money by NOT trading when risk/reward is unfavorable. Cash is a position.
Original Research & Analysis:Ā This comprehensive options flow analysis, including all trade interpretations, catalyst research, technical analysis, risk assessments, and strategic recommendations, is proprietary content created exclusively byĀ Ainvest.comĀ andĀ labs.ainvest.com.
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Content Protection:Ā This analysis represents significant research effort, proprietary data aggregation, and expert interpretation. Unauthorized commercial use violates intellectual property rights and will be pursued legally.
Disclaimer:Ā This analysis is for educational and informational purposes only. Not financial advice. Options trading involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results. Always conduct your own due diligence and consult licensed financial advisors before making investment decisions.
Ā© 2025 Ainvest.com & labs.ainvest.com - All Rights Reserved Generated: November 6, 2025 Total Premium Analyzed: $65.4M across 10 unusual trades
Ainvest Option Flow Digest is published daily, analyzing institutional options positioning to help retail traders understand smart money flows. Subscribe for daily updates and in-depth analysis.

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