|
|
|
Brandon Chapman here. |
Sometimes the biggest moves in the market are telegraphed well in advance, but you won't find these signals in any SEC filing. |
Why? |
Because the market's heavyweight players often use options to express their positions, leaving breadcrumbs for savvy investors to follow. |
Today, we're going to dive into some of the biggest options trades from last week that could be setting the stage for major moves in the coming days. |
But first, let's talk about what unusual options activity really is and why it matters to you as an investor or trader. |
Unusual options activity is like catching Wall Street's big fish in the act. |
It's characterized by above-average option volume, large trades executed in a single print, and high volume relative to open interest. |
When you see these patterns, it's often a sign that someone with deep pockets – we're talking hedge funds, institutional investors, or even corporate insiders – is making a big bet. |
Why do these players use options? |
Simple: leverage, stealth, and the potential for outsized returns. Options allow them to control large blocks of shares without moving the underlying stock price too much. |
It's a way for them to position themselves for big moves while flying under the radar of most retail investors. |
Now, let's pull back the curtain on some of the most intriguing options trades from last week. |
These aren't just random bets – they could be signals of upcoming news, earnings surprises, or major market shifts. |
By understanding these trades, you might just get a glimpse into the crystal ball of Wall Street's elite. |
#1: Pinterest (PINS) |
On Friday we saw a ton of options activity in PINS calls. |
Specifically, we saw a trader come in at 9:46 AM ET and buy 5,438 contracts of the September 13 $32.5 calls for $0.43. |
That's a $233K bet on otm calls. |
They'll need PINS to rise by 2.7% by the September 13 expiration just to break even. |
In addition, we saw over 11k contracts trade that strike vs. 2.2K open interest, which indicates these are new positions. |
But that's not all… |
Right before the bell on Friday, a trader came in at 3:48 PM ET and bought 4K $34 calls for $0.20 expiring on September 13. |
That's an $80K on otm calls. |
For this trade to just break-even on expiration, the trader will need PINS to rise by 6.7%. |
Over 8K contracts of the strike traded vs. 39 contracts of open interest. |
What's going on PINS? |
Earnings are not till late October but someone is making some huge bets and is expecting a move within the next week or two. |
|
#2: Monster Bet In MSTR |
MicroStrategy has more or less become a bitcoin holding company at this point. |
It's also one of the most hated stocks on Wall Street with a short float of 14.3% |
Is a short squeeze coming? |
On Friday morning someone came in and bought a whopping 31.7K contracts of the $137 calls for $2.35 expiring on September 6. |
That's a nearly a $7.5M bet on options set to expire worthless in just a few days unless MSTR makes a move. |
The stock on Friday closed at $132.42, which means this trader will need MSTR to gain 5.2% this week just to break-even! |
Over 35k contracts traded on the strike vs. 305 contracts open interest. |
MSTR does not have earnings this week, so we can't attribute this trade to a bet on earnings. |
Someone is expecting a big move and they believe it will happen this week. |
And are willing to bet nearly $7.5 million on it. |
Talk about conviction… |
#3: Shoals Technologies |
Shoals Technologies is a company that provides electrical balance of systems for solar, storage, and electric vehicle charging infrastructure. |
On Thursday they will hold their Investor Day Conference. |
On August 29th we saw some heavy call volume in the symbol. |
Someone came in and bought 5K contracts of the September 20 $5 calls for $0.54. Those calls last Friday had an options value of $0.68. |
But based on the open interest 8.4K, they are still likely holding onto the majority or all of their position. |
That's right, despite possibly being up 24% and sitting on $65K in profits, they believe their is more upside in the name. |
This bet is not as risky as the PINS or MSTR trades we went over because these options are ITM. |
They are able to control 500K shares for only $270K with the call options. |
In addition to the $5 strike, we also see the $6 calls with open interest of 3.5K contracts. |
Will SHLS impress on its Investor Day? |
Someone is making a bet there is. |
Remember, unusual options activity can be a powerful tool in your trading arsenal, but it's not foolproof. |
Always do your own research and consider the broader market context. |
Stay vigilant, stay curious, and you might just spot the next big market move before it happens. |
|
IN/OUT Advantage Lifetime Access🚀 LIFETIME ACCESS TO IN/OUT ADVANTAGEFREE $2000 TICKET INCLUDED!Join us at the exclusive TheoTRADE luxury event in Scottsdale, Sept 12th-14th. Your choice: attend in person or virtually! 🔥 19 out of 22 trades cashed in! Don't miss out! Join now for:- 520 trade alerts over 10 years
- On-demand masterclass
- Weekly video updates
- Beginner's guide
- Real-time trade tracker
- Auto Expected Move tool
🏆 Recent wins:- SLV: 30% in 5 days
- TLT: 55% in 7 days
- META: 30% in 0 days
🔒 90-day money-back guarantee ⏰ Only 100 spots available! Claim Your Lifetime Access Now! |
|
Tidak ada komentar:
Posting Komentar