27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
This unusual options alert can help traders discover the next big trading opportunities. Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. Unusual trading activity could push option prices to exaggerated or underestimated levels.
Below are some instances of unusual options activity happening in the Consumer Discretionary sector:
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| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NIO | CALL | SWEEP | BEARISH | 12/18/20 | $42.00 | $36.4K | 5.4K | 15.2K |
| PENN | CALL | SWEEP | BEARISH | 12/18/20 | $80.00 | $265.6K | 11.1K | 8.0K |
| DKNG | CALL | TRADE | BULLISH | 12/18/20 | $52.00 | $29.0K | 4.9K | 6.8K |
| TSLA | CALL | TRADE | BEARISH | 12/31/20 | $700.00 | $3.0 million | 6.2K | 4.3K |
| BABA | PUT | SWEEP | BEARISH | 12/18/20 | $257.50 | $122.8K | 1.8K | 3.0K |
| GPS | CALL | SWEEP | BULLISH | 01/15/21 | $22.00 | $45.4K | 26.0K | 2.6K |
| CCL | PUT | SWEEP | BEARISH | 12/31/20 | $19.00 | $27.5K | 2.1K | 2.5K |
| SBUX | CALL | SWEEP | BULLISH | 12/18/20 | $100.00 | $94.3K | 9.0K | 1.8K |
| MAT | CALL | TRADE | BEARISH | 01/21/22 | $22.00 | $120.0K | 83 | 1.0K |
| GSX | PUT | TRADE | BULLISH | 03/19/21 | $50.00 | $930.0K | 5 | 1.0K |
Explanation
These itemized elaboration has been created using the accompanying table.
• For NIO (NYSE:NIO), we notice a call option sweep that happens to be bearish, expiring in 4 day(s) on December 18, 2020. A trader bought 300 contract(s) at a $42.00 strike. This particular call needed to be split into 11 different trades to become filled. The trader or institution spent $36.4K on this trade with a price of $121.0 per contract. There were 5471 open contracts at this strike prior to today, and today 15255 contract(s) were bought and sold.
• Regarding PENN (NASDAQ:PENN), we observe a call option sweep with bearish sentiment. It expires in 4 day(s) on December 18, 2020. A trader bought 664 contract(s) at a $80.00 strike. This particular call needed to be split into 7 different trades to become filled. The trader or institution spent $265.6K on this trade with a price of $400.0 per contract. There were 11101 open contracts at this strike prior to today, and today 8005 contract(s) were bought and sold.
• For DKNG (NASDAQ:DKNG), we notice a call option trade that happens to be bullish, expiring in 4 day(s) on December 18, 2020. A trader bought 200 contract(s) at a $52.00 strike. The trader or institution spent $29.0K on this trade with a price of $145.0 per contract. There were 4994 open contracts at this strike prior to today, and today 6827 contract(s) were bought and sold.
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• Regarding TSLA (NASDAQ:TSLA), we observe a call option trade with bearish sentiment. It expires in 17 day(s) on December 31, 2020. A trader bought 888 contract(s) at a $700.00 strike. The trader or institution spent $3.0 million on this trade with a price of $3390.0 per contract. There were 6234 open contracts at this strike prior to today, and today 4362 contract(s) were bought and sold.
• For BABA (NYSE:BABA), we notice a put option sweep that happens to be bearish, expiring in 4 day(s) on December 18, 2020. A trader bought 378 contract(s) at a $257.50 strike. This particular put needed to be split into 6 different trades to become filled. The trader or institution spent $122.8K on this trade with a price of $325.0 per contract. There were 1889 open contracts at this strike prior to today, and today 3052 contract(s) were bought and sold.
• Regarding GPS (NYSE:GPS), we observe a call option sweep with bullish sentiment. It expires in 32 day(s) on January 15, 2021. A trader bought 598 contract(s) at a $22.00 strike. This particular call needed to be split into 16 different trades to become filled. The trader or institution spent $45.4K on this trade with a price of $76.0 per contract. There were 26073 open contracts at this strike prior to today, and today 2636 contract(s) were bought and sold.
• For CCL (NYSE:CCL), we notice a put option sweep that happens to be bearish, expiring in 17 day(s) on December 31, 2020. A trader bought 500 contract(s) at a $19.00 strike. This particular put needed to be split into 31 different trades to become filled. The trader or institution spent $27.5K on this trade with a price of $55.0 per contract. There were 2148 open contracts at this strike prior to today, and today 2571 contract(s) were bought and sold.
• For SBUX (NASDAQ:SBUX), we notice a call option sweep that happens to be bullish, expiring in 4 day(s) on December 18, 2020. A trader bought 233 contract(s) at a $100.00 strike. This particular call needed to be split into 22 different trades to become filled. The trader or institution spent $94.3K on this trade with a price of $405.0 per contract. There were 9077 open contracts at this strike prior to today, and today 1867 contract(s) were bought and sold.
• For MAT (NASDAQ:MAT), we notice a call option trade that happens to be bearish, expiring in 403 day(s) on January 21, 2022. A trader bought 1000 contract(s) at a $22.00 strike. The trader or institution spent $120.0K on this trade with a price of $120.0 per contract. There were 83 open contracts at this strike prior to today, and today 1002 contract(s) were bought and sold.
• Regarding GSX (NYSE:GSX), we observe a put option trade with bullish sentiment. It expires in 95 day(s) on March 19, 2021. A trader bought 1000 contract(s) at a $50.00 strike. The trader or institution spent $930.0K on this trade with a price of $930.0 per contract. There were 5 open contracts at this strike prior to today, and today 1001 contract(s) were bought and sold.
Options Alert Terminology
- Call Contracts: The right to buy shares as indicated in the contract.
- Put Contracts: The right to sell shares as indicated in the contract.
- Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it.
- Premium/Option Price: The price of the contract.
For more information, visit our Guide to Understanding Options Alerts or read more about unusual options activity.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.