Shared by
foldelinio_BOWS
Stop: 8.70$
R: 4
30k APR 9 calls traded and it was touted via twitter.
Stock reacted couple of minutes later, either on the tweet or on the 1.5M deltas the marketmaker had to hedge.
Either way, I bought the break of the morning range with stop under 8.70$ and added into momentum as long as they were taking offers.
I scaled out as it approached 9$ and closed as soon as it had difficulties trading above whole number.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-04-08 10:50:05 | RAD | buy | $8.810 | long |
| 2015-04-08 10:50:20 | RAD | buy | $8.830 | long |
| 2015-04-08 10:55:11 | RAD | buy | $8.850 | long |
| 2015-04-08 10:56:00 | RAD | sell | $8.850 | long |
| 2015-04-08 10:56:05 | RAD | buy | $8.840 | long |
| 2015-04-08 11:23:04 | RAD | sell | $8.920 | long |
| 2015-04-08 11:27:40 | RAD | sell | $8.950 | long |
| 2015-04-08 11:38:30 | RAD | sell | $8.940 | long |
| 2015-04-08 11:48:55 | RAD | buy | $8.970 | long |
| 2015-04-08 11:53:51 | RAD | sell | $8.980 | long |
| 2015-04-08 11:59:41 | RAD | sell | $8.990 | long |
| 2015-04-08 12:06:16 | RAD | sell | $8.970 | 0 |
Comments
foldelinio_BOWS
Again, similar answer :) It's about context...always.
It's not about the question if it was an order to open a long call position or not here. Ask yourself WHY on earth would anyone trade 30,000 calls that expire in 5 day at this exact spot.
The stock did not move and was around 8.70$, when the trade came in.
Now look at the daily and the morning action. Close to new highs: check! Round number on a low beta stock: check! Consolidation above yesterdays support: check! 10cts range for 1 1/2 hours: check!
And now 30,000 ATM weeklies hit the tape. What's your implication now?
Mine was: they are going for the 9$ high.
tombro
foldelinio, thank you for your answers, very well done. You are very good at explaining things!
All the best
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Folderlinio...similar question to the one on your other trade, this one on the 30k APR 9 calls traded. What are the implications of that trade? Were they buys or sells (or both)? I noticed the open interest went down around 1000 contracts from the day before, so do you think someone was just daytrading it?
Going back on TOS in OnDemand it seems like the open interest and volume in the April 9 took a big jump on March 19th(108k contracts traded and the open interest jumped from 11k to 138k), yet that was a kinda small range day (tho the 2 days leading up to it were strong). Does this have any implications in relation to this day?
Sorry to ask so many questions and Thanks for your time. I am learning options and want to understand the details.