Skip to main content

Market Overview

Tony Zhang Sees Unusual Options Activity In ARK Innovation ETF

Share:

On CNBC's "Options Action," Tony Zhang spoke about unusual options activity in ARK Innovation ETF (NYSE: ARKK). The ETF traded almost 20% lower in the last three weeks and during the sell-off, on Thursday, the options volume was four times the average daily volume, said Zhang.

He saw a fairly unusual trade in the name. There was a purchase of 4,000 contracts of the May $85/$102/$109 call spread risk reversal at $1.47. The options structure is pretty common, but it is unusual that it expires next Friday. The trader sold the May $85 put, bought the May $102 call and sold the May $109 call for a debit of $1.47. The trade breaks even at $103.47 or around 4% above the closing price on Thursday. Its maximal profit is $5.53.

 

Related Articles (ARKK)

View Comments and Join the Discussion!

Posted-In: CNBC Options Action Tony ZhangOptions Markets Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com