Trading Tips Blog

Trader bets on 70 percent rally by July. July $85 call options on Advanced Micro Devices (AMD) saw a 30-fold surge in volume, going from 100 open contracts to about 3,000. The trade, expiring in 170 days, indicates a 70 percent move higher for shares, based on their current price near $50. The buyer of these options also paid about $0.60, or $60 per contract, so the trader may just be betting on the company before it reported earnings after the market close ...
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Trader bets on jump in shares in the next month. February 21st call options with an $87 strike on AbbVie (ABBV) saw a 30-fold rise in volume, going from 104 open contracts to over 3,100. The trade, expiring in 24 days, is a bet on shares rising about 3 percent from their price near $84.50. Adding in the $1.65 the option buyer paid on average, the trade will profit the buyer if shares rally closer to 5 percent. AbbVie has recently shed some of ...
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Trader bets on decline through March. March 2020 $23 put options on Juniper Networks (JNPR) saw a 50-fold surge in volume, going from 123 open contracts to over 5,900 trade hands. The trade, expiring in 53 days, is a bet that shares of the company will fall at least $1.50 from their current price. For the trader to profit at expiration, shares would need to close in on $22.65, to make up for the cost of $0.45 per contract. Shares of the communication equipment ...
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Trader bets on 80 percent rally in shares this year. January 2021 calls with a $270 strike price on Spotify Technology (SPOT) saw a five-fold increase in volume, going from 157 open contracts to over 825. The bet, expiring in 358 days, would call for an 80 percent rally in shares from the current price around $148. The trader paid about $1.05, or $105 per contract, so any rally in Spotify shares this year would likely lead to outsized returns on this trade. Shares ...
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Trader bets space tourism company’s shares will go to the moon this year. January 2021 calls with a $25 strike on Virgin Galactic Holdings (SPEC) saw a 12-fold rise in volume, going from 295 contracts to over 10,300. The bet, expiring in 358 days, is that shares will hit at least $28.25, adjusting for the $3.25 that the option buyer paid in premiums. The $25 strike price is currently about 35 percent higher than where shares currently trade near $18.50. For the buyer ...
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Trader bets on current rally to continue. The May 2020 $70 call options on Las Vegas Sands (LVS) saw a 12-fold rise in volume, going from 812 open contracts to over 10,200. The bet, expiring in 114 days, is that shares will continue higher. And with LVS shares at $71 right now, the trade is already $1 in-the-money. The buyer paid about $4.65, or $465 per contract, so shares would need to be close to $75 to profit at expiration. Shares of the casino ...
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Traders bet on drop this week. $50.50 put options expiring on Friday, January 24th, on Advanced Micro Devices (AMD) saw a 43-fold rise in volume, going from 102 open contracts to over 4,350 trade hands. The bet is that shares will fall about 1 percent from their price near $50.95 in the next four trading days. The option buyer paid $0.73 on average per contract, so shares would need to decline under $49.75 for the buyer to profit at expiration. Shares of Advanced Micro ...
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Traders bet on rally to continue. The February 14th $28 call options on Nike (NKE) saw a 14-fold rise in volume, going from 104 open contracts to nearly 1,500. With 25 days to go until expiration, the buyer of these options is betting on a 3.5 percent move higher in shares from the current price around $104.30. The option buyer also paid $0.45 to get into the trade, so the trade won’t profit at expiration unless shares hit at least $108.45 or higher. Shares ...
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