Options Alert: Can DoorDash Keep Delivering?

DoorDash has rallied since mid-June, and one big trader seems to think it can keep delivering.

Options volume jumped to almost triple the daily average yesterday, with a single large transaction accounting for most of the activity:

• 10,000 September 145 calls were sold for $67.21.
• 10,000 November 170 calls were purchased for $50.51.

Volume was below open interest in the September contracts, but not the Novembers. That suggests an existing long position expiring next month was closed and rolled to November.

Calls often gain value when shares appreciate because they fix the price where investors can buy a security. They can sometimes substitute for holding stock, generating leverage because of their lower cost.

Monday's transaction was probably the work of a trader who purchased the September 145 calls in an earlier session. Adjusting the position let him or her collect a credit of $16.70 and remain exposed to upside for an additional two months. Their delta was also lowered from 100 to 85, so the new position will track the stock a little less closely.

DASH fell 3 percent to $209.86 yesterday, but is up 44 percent from its June 11 low. Its last set of numbers on August 5 was mixed, with profit missing but revenue and guidance beating estimates. The company also said on July 29 that the Federal Aviation Administration (FAA) approved drone-powered deliveries.

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