OptionHacker scans thousands of option orders each day to apply the same proprietary filters used by professional market makers. The result is a series of 15-25 real-time notifications for trades placed by hedge funds, banks, and other major institutions that are the most "unusual."
Using the same technology employed by every major institutional trading desk, OptionHacker processes ultra-low latency market data to monitor all trading activity across the 12 exchanges where equity options are traded.
Options are traded for one of two reasons - as directional speculation (upside or downside) or as hedge against a stock position. OptionHacker filters out all but the most speculative orders, thus providing users with highly actionable trade setups.
Upon startup OptionHacker displays all previous signals from the current trading session, so traders always have access to current market insights.
Alerts are delivered in real-time via web browser pop-up, with average latency of <100 milliseconds from the time of the original order fill:
On June 3rd Protective Life came across the tape as Wall Street investors laid big bets on an announcement of a proposed takeover by Japanese insurance company Dai-Ichi. The stock itself soared almost 12% that day and the next day PL was indeed taken over by Dai-Ichi. This trade made a profit of $805,00.
A trader bought way more call options in Keurig against low open interest on that Friday morning. This was likely due to some sort of deal rumor but we saw no news come Friday’s close and the stock sold off on Monday. This is a situation where the initial play was aggressive enough to cause more buying and elevate the stock price significantly. Profit from this trade exceeded two million dollars.
After a supposed takeover of Anadarko Petroleum by Exxon was reported on Tuesday, APC got a huge bid with a lot of UOA jumping almost five bucks. The options on APC jumped $3.09 within a day. The deal has since been deemed unlikely.
Clorox Company was yet another target for M&A deals and amid all the speculation on TV and online, it rallied over three dollars. We can actually see from the time stamp and chart that this was a late entry into that rally. However, they clearly were still able to take big profits based on volatility and outlook and made $130 per lot.
A trader in Coors Brewing Company took advantage of an upgrade based on strong fundamentals to take home big profits. The report on TAP suggested that the company was under-bought and undervalued at the time with plenty of value hiding below the surface. The market responded accordingly and the options almost tripled within days.