We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial.
OptionHacker sifts through this massive amount of data in real time during the trading day. The result is a consolidated set of alerts that help a retail trader spot the largest unusual options activity trades being placed by institutional traders presented in easy to read bullish and bearish signals.
Trade: On 7.24.2014 a trader bought 15,000 BID Oct 43-47 Bull Call Spread for $1.10
This trade hit OptionHacker in BID stock which is currently trading around $39.96 in a 52 week range of $39.14-$54.00. The stock has been doing poorly this year with shares selling off 20.00% year to date. It appears this trader is expecting a /reversal of this move as this is an extremely bullish trade. These options are currently trading at $1.10.
Net Capital Outlay: almost $1.7 Million
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
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