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.
Someone with a lot of money to spend has taken a bearish stance on Affirm Holdings (NASDAQ:AFRM).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with AFRM, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 13 uncommon options trades for Affirm Holdings.
This isn't normal.
The overall sentiment of these big-money traders is split between 23% bullish and 76%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $235,956, and 8 are calls, for a total amount of $398,155.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $25.0 to $110.0 for Affirm Holdings over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Affirm Holdings's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Affirm Holdings's whale trades within a strike price range from $25.0 to $110.0 in the last 30 days.
Affirm Holdings Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AFRM | CALL | TRADE | NEUTRAL | 01/19/24 | $70.00 | $136.4K | 261 | 400 |
| AFRM | PUT | TRADE | BEARISH | 05/20/22 | $35.00 | $121.2K | 12.1K | 278 |
| AFRM | CALL | SWEEP | BEARISH | 06/17/22 | $35.00 | $63.5K | 697 | 102 |
| AFRM | CALL | SWEEP | BEARISH | 05/06/22 | $25.00 | $46.5K | 54 | 50 |
| AFRM | CALL | SWEEP | BEARISH | 05/20/22 | $35.00 | $40.8K | 2.3K | 106 |
Where Is Affirm Holdings Standing Right Now?
- With a volume of 3,825,175, the price of AFRM is down -5.82% at $34.88.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 19 days.
What The Experts Say On Affirm Holdings:
- Piper Sandler has decided to maintain their Neutral rating on Affirm Holdings, which currently sits at a price target of $58.
- MoffettNathanson downgraded its action to Neutral with a price target of $50
- Morgan Stanley has decided to maintain their Overweight rating on Affirm Holdings, which currently sits at a price target of $80.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
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.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!