Microvision Options Traders Are Betting On A Big Rebound

Microvision, Inc. MVIS rebounded over 13% by Tuesday afternoon following a five-day sell-off where the stock fell from its April 27 all-time high of $28 to $12.80 Tuesday morning.

Some traders would call Microvision “crowded” because of the recent hype of retail traders in the stock following a Reddit-fueled rally. The rally swiftly ended, however, after Microvision reported a first-quarter 2021 earnings miss which caused the stock to plummet 21%.

Microvision reported revenue of $0.5 million, $1 million less than the same period last year. The company reported a loss of 4-cents per share, which missed the Street’s estimate of a loss of 2 cents.

Tuesday’s bullish break brought in options traders who bet $718,530 Microvision’s stock is heading higher.

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The Microvision Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:50 a.m., Tuesday a trader executed a call sweep, near the ask, of 200 Microvision options with a $12 strike price expiring on May 21. The trade represented a $42,200 bullish bet for which the trader paid $2.11 per option contract.
• At 10:03 a.m., a trader executed a call sweep, above the ask, of 1,000 Microvision options with an $11 strike price expiring on May 21. The trade represented a $280,000 bullish bet for which the trader paid $2.80 per option contract.
• At 11:40 a.m., a trader executed a call sweep, near the ask, of 230 Microvision options with a $13 strike price expiring on June 18. The trade represented a $67,850 bullish bet for which the trader paid $2.95 per option contract.
• At 11:46 a.m., a trader executed a call sweep, near the ask, of 242 Microvision options with a $15 strike price expiring on June 18. The trade represented a $54,450 bullish bet for which the trader paid $2.25 per option contract.
• At 11:50 a.m., a trader executed a call sweep, near the ask, of 230 Microvision options with a $15 strike price expiring on June 18. The trade represented a $51,520 bullish bet for which the trader paid $2.24 per option contract.
• At 12:43 p.m., a trader executed a call sweep, near the ask, of 200 Microvision options with a $15 strike price expiring on Jan. 21. The trade represented a $98,000 bullish bet for which the trader paid $4.90 per option contract.
• At 1:02 p.m., a trader executed a call sweep, near the ask, of 379 Microvision options with a $16 strike price expiring on May 21. The trade represented a $72,010 bullish bet for which the trader paid $1.90 per option contract.
• At 1:26 p.m., a trader executed a call sweep, near the ask, of 210 Microvision options with a $16 strike price expiring on May 21. The trade represented a $52,500 bullish bet for which the trader paid $2.50 per option contract.

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Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays the market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

MVIS Price Action: Shares of Microvision were up 11.11% to $15.40 Tuesday afternoon at market close.

(photo: Photo by MayoFi on Unsplash)