27% profits every 20 days?
This is what Nic Chahine averages with his options 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:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| TSLA | CALL | TRADE | BULLISH | 12/24/20 | $630.00 | $156.9K | 20.5K | 29.0K |
| PTON | CALL | SWEEP | BEARISH | 12/24/20 | $170.00 | $43.8K | 450 | 11.5K |
| VUZI | CALL | SWEEP | BULLISH | 01/15/21 | $7.50 | $353.8K | 14.7K | 10.8K |
| NIO | CALL | TRADE | BEARISH | 01/15/21 | $55.00 | $70.3K | 40.6K | 5.7K |
| GME | PUT | SWEEP | BEARISH | 12/24/20 | $18.00 | $49.1K | 33 | 5.1K |
| SPWH | CALL | SWEEP | BEARISH | 01/15/21 | $15.00 | $46.3K | 5.1K | 4.1K |
| BABA | CALL | SWEEP | BULLISH | 02/19/21 | $300.00 | $227.5K | 14.9K | 1.9K |
| TGT | CALL | TRADE | BULLISH | 02/19/21 | $175.00 | $806.2K | 5.1K | 1.3K |
| ABNB | CALL | SWEEP | BEARISH | 01/15/21 | $160.00 | $446.4K | 3.0K | 1.0K |
| PENN | PUT | TRADE | BULLISH | 04/16/21 | $40.00 | $44.6K | 1.1K | 1.0K |
Explanation
These bullet-by-bullet explanations have been constructed using the accompanying table.
• Regarding TSLA (NASDAQ:TSLA), we observe a call option trade with bullish sentiment. It expires in 2 day(s) on December 24, 2020. A trader bought 215 contract(s) at a $630.00 strike. The trader or institution spent $156.9K on this trade with a price of $730.0 per contract. There were 20587 open contracts at this strike prior to today, and today 29012 contract(s) were bought and sold.
• For PTON (NASDAQ:PTON), we notice a call option sweep that happens to be bearish, expiring in 2 day(s) on December 24, 2020. A trader bought 200 contract(s) at a $170.00 strike. This particular call needed to be split into 6 different trades to become filled. The trader or institution spent $43.8K on this trade with a price of $220.0 per contract. There were 450 open contracts at this strike prior to today, and today 11540 contract(s) were bought and sold.
• For VUZI (NASDAQ:VUZI), we notice a call option sweep that happens to be bullish, expiring in 24 day(s) on January 15, 2021. A trader bought 1612 contract(s) at a $7.50 strike. This particular call needed to be split into 17 different trades to become filled. The trader or institution spent $353.8K on this trade with a price of $220.0 per contract. There were 14732 open contracts at this strike prior to today, and today 10889 contract(s) were bought and sold.
• For NIO (NYSE:NIO), we notice a call option trade that happens to be bearish, expiring in 24 day(s) on January 15, 2021. A trader bought 227 contract(s) at a $55.00 strike. The trader or institution spent $70.3K on this trade with a price of $310.0 per contract. There were 40612 open contracts at this strike prior to today, and today 5702 contract(s) were bought and sold.
• For GME (NYSE:GME), we notice a put option sweep that happens to be bearish, expiring in 2 day(s) on December 24, 2020. A trader bought 1000 contract(s) at a $18.00 strike. This particular put needed to be split into 12 different trades to become filled. The trader or institution spent $49.1K on this trade with a price of $49.0 per contract. There were 33 open contracts at this strike prior to today, and today 5134 contract(s) were bought and sold.
• Regarding SPWH (NASDAQ:SPWH), we observe a call option sweep with bearish sentiment. It expires in 24 day(s) on January 15, 2021. A trader bought 200 contract(s) at a $15.00 strike. This particular call needed to be split into 10 different trades to become filled. The trader or institution spent $46.3K on this trade with a price of $230.0 per contract. There were 5147 open contracts at this strike prior to today, and today 4134 contract(s) were bought and sold.
• Regarding BABA (NYSE:BABA), we observe a call option sweep with bullish sentiment. It expires in 59 day(s) on February 19, 2021. A trader bought 700 contract(s) at a $300.00 strike. This particular call needed to be split into 37 different trades to become filled. The trader or institution spent $227.5K on this trade with a price of $325.0 per contract. There were 14994 open contracts at this strike prior to today, and today 1977 contract(s) were bought and sold.
• For TGT (NYSE:TGT), we notice a call option trade that happens to be bullish, expiring in 59 day(s) on February 19, 2021. A trader bought 1250 contract(s) at a $175.00 strike. The trader or institution spent $806.2K on this trade with a price of $645.0 per contract. There were 5153 open contracts at this strike prior to today, and today 1324 contract(s) were bought and sold.
• Regarding ABNB (NASDAQ:ABNB), we observe a call option sweep with bearish sentiment. It expires in 24 day(s) on January 15, 2021. A trader bought 202 contract(s) at a $160.00 strike. This particular call needed to be split into 8 different trades to become filled. The trader or institution spent $446.4K on this trade with a price of $2210.0 per contract. There were 3002 open contracts at this strike prior to today, and today 1074 contract(s) were bought and sold.
• For PENN (NASDAQ:PENN), we notice a put option trade that happens to be bullish, expiring in 115 day(s) on April 16, 2021. A trader bought 770 contract(s) at a $40.00 strike. The trader or institution spent $44.6K on this trade with a price of $58.0 per contract. There were 1156 open contracts at this strike prior to today, and today 1000 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 news on unusual options activity.
27% profits every 20 days?
This is what Nic Chahine averages with his options 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.
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