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Cheese
1,374 posts
msg #140971
Ignore Cheese
1/14/2018 9:57:26 AM

Thank you, Four for the Intro to Options link.
https://www.moneyshow.com/articles/tptp072513-47705/matt-kerkhoffs-intro-to-options-part-14/

mahkoh
1,065 posts
msg #140974
Ignore mahkoh
1/14/2018 11:07:06 AM

Lavapit, 6000 Feb16 39 puts were sold below the bid 25 seconds later, also on ARCA. Most likely that would be the other leg of the trade.

lavapit315
47 posts
msg #140975
Ignore lavapit315
1/14/2018 11:24:00 AM

Ok, thanks. That's what I thought but wanted some confirmation.

four
5,087 posts
msg #140977
Ignore four
1/14/2018 11:40:53 AM

Cheese

Welcome


15minofPham
168 posts
msg #140978
Ignore 15minofPham
1/14/2018 12:11:39 PM

Cheese,
Thanks for the comment. I remember you commenting on my 5th anniversary with SF five years ago. Guess what, my 10th is coming up in 2 weeks! I lurked for 9 years so I figure it's about time to give back to the SF community. Mahkok is also very good at options while lavapit is an up and comer. Four is our Google.

I will be posting a SAFE game plan for option newbies who want to dip their toes in follow the money. Piggy backing with the big players is safer than trying on your own. I'd rather be a fat tick than a fat cat!

Cheese
1,374 posts
msg #140979
Ignore Cheese
1/14/2018 12:23:27 PM

Great. Thank you, Tuan.

four
5,087 posts
msg #140980
Ignore four
1/14/2018 1:02:59 PM

I will be posting a SAFE game plan for option newbies who want to dip their toes in follow the money.

Excellent and appreciated

sandjco
648 posts
msg #140981
Ignore sandjco
1/14/2018 2:00:43 PM

Thanks for sharing!

Question (to check my understanding)...using today's data (Jan 14th on MarketChameleon). If I am understanding the concept properly, these would be the possible candidates to "play"?

AMD Jul 14P at 2.86, 20,000 contracts traded (just happens to be trying to break EMA200 from below)
T May 36P at $1.55, 20,000 contracts traded (straddling EMA 200)

Earnings for both at month end.




Thanks in advance

mahkoh
1,065 posts
msg #140982
Ignore mahkoh
1/14/2018 2:12:39 PM

MAR again active on Friday, this time it's a longer term play. 30000 Jan2019 175 calls bought and 15000 Jan2019 150 calls sold with the stock at 139.10 . As a spread this doesn't make much sense to me so I assume this is a close of the 150 position trade to roll it up to a higher strike. We'll be sure on Tuesday when we can check open interest which is currently at 30055 contracts.

mahkoh
1,065 posts
msg #140984
Ignore mahkoh
modified
1/14/2018 2:36:40 PM

AMD Jul 14P at 2.86, 20,000 contracts traded (just happens to be trying to break EMA200 from below)
This looks like a butterfly, only without a body. Not sure what that's being called. The 12 put and call strike and the 14 call were all traded on the bid, so the only indication of the direction comes from the 14 put. This one was above the ask, so most likely the 12 put and call were sold and the 14 put and call bought. The sweet spot for the investor is when AMD closes at 12 next Friday.

T May 36P at $1.55, 20,000 contracts traded (straddling EMA 200)
T is indicated as a spread and the obvious link is the 6000 Feb 39 puts that traded just 25 seconds later at the same exchange. However this trade also makes little sense so my guess is that the Feb 39 puts were the closing out of an existing position to roll down to the 36 strike 3 months further out. The open interest for the Feb 39 puts is 33981, check it's 6000 less on Tuesday.

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