Tag Archives: Unusual Option Volume

Today’s Unusual Recap – Thursday 6-4-15

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Today was the first trading session of the week where the market didn't obey the rules.   Instead of closing smack in the middle of the daily range, the $SPY closed sharply lower.  But in 2015 fashion the market was able to spike higher into the close to finish OTL -off the lows.

There were quite a few option trades that had my attention today.  I shared most of them in the News portion of the chat room.  I'll go over them as well as others that have piqued my interest below.  During market hours I post them right as they occur outside of the main chatroom to keep it clean and it also helps keep a nice record of the data.  Some of the bigger, more important trades I post in both chatrooms.

The VIX

As the VIX rockets out of "The Wedge"  trader(s) position for increased volatility.  How bout them VIX June and July 20's?

For the WYNN

How bout them $WYNN calls?  Quite a few in the chat room had them from pennies to dollars.  The $107 strike was $.05 offer all week and soared to $2.74 today.

Let's get into today's option action....  Some individual names.  Bullish action first

Bullish

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Option Recap – Tuesday – 6/2/15

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Today's trading session eerily resembled yesterdays.  Stocks started the day lower, rallied until mid-day and gave back 50% of that intra-day rally into the close.  As JB aptly put it in his wonderful $YELP piece today,  it was like Deja Vu all over again for the market.

If you missed yesterdays Option Recap you missed the unusual $LLY activity right near the close.  Those options rallied over 100% after today's open as $LLY literally fell out of bed.

That $INTC trade I'm sticking in is beginning to hit paydirt.   What else was going on today?   I've got a lot more to share today than I did yesterday..... if that can be considered an answer.

Let's get into it.  I am looking to piggyback a smaller trade

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Unusual Option Trade 2-17-15

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While there was Interesting option activity in many names today,  one really grabbed my interest.  Most of the action is trading for a move to occur over the next few months meaning time is on our side.

Over 70% of options were purchased at the ask.  I like seeing that type of action, as it highlights some impatience and/or confidence that these options are going to turn a profit.

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Someone is Betting Big That This Stock Will Fall

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It started two hours after the market opened and it stopped around lunch time.  In the span of an hour someone was going coo coo for Cocoa puts.  Spoiler alert... they weren't buying puts on Cocoa, but they were going coo coo,  as in hitting the ask with seemingly reckless abandon.  Patience was not a virtue for this put buyer.  With the spread at bid $.15 ask $.60 the buyer was picking up all he/she could handle at $.60.  These options expire in March and up to today had zero open interest.  No one wanted to buy these puts, and no one wanted to sell them.

All together someone bought more than $240,000 of far out of the money options, in a bet on significant downside within the next month.  This trade brings back memories of the $LNCO trade in January 2013.  A giant unusual option trade that made little sense at the time ended up making the trader millions of dollars.

Is that what we will see with this unusual trade?

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