Shared by
foldelinio_BOWS
42k May 90 calls bought via sweep.
Stop: 85.65$ first trade/85.70 for add on's
R: 4
XOM bounced off of previous days support, then the call sweep came in and the bids were holding.
I did not expect a runner, since resistance levels were all over the place, but the short squeeze from the approx 1M deltas was enough for a scalp.
I was leaning on the 85.60/85.70 level, since it was the top of yesterdays range into the close. Stock refused to pop, so I left it alone.
I'll keep in on WL for a second day play and a possible break over 86$
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-04-13 11:23:48 | XOM | buy | $85.690 | long |
| 2015-04-13 11:25:24 | XOM | sell | $85.770 | long |
| 2015-04-13 11:30:20 | XOM | buy | $85.720 | long |
| 2015-04-13 11:31:55 | XOM | sell | $85.740 | long |
| 2015-04-13 11:38:56 | XOM | sell | $85.810 | long |
| 2015-04-13 11:50:27 | XOM | buy | $85.730 | long |
| 2015-04-13 11:50:54 | XOM | sell | $85.750 | long |
| 2015-04-13 11:53:10 | XOM | sell | $85.683 | long |
| 2015-04-13 11:53:10 | XOM | sell | $85.680 | 0 |
| 2015-04-13 11:56:45 | XOM | buy | $85.690 | long |
| 2015-04-13 11:58:07 | XOM | sell | $85.690 | 0 |
| 2015-04-13 12:26:50 | XOM | buy | $85.740 | long |
| 2015-04-13 12:29:22 | XOM | buy | $85.760 | long |
| 2015-04-13 12:30:12 | XOM | sell | $85.780 | long |
| 2015-04-13 12:32:20 | XOM | sell | $85.800 | long |
| 2015-04-13 12:41:41 | XOM | buy | $85.820 | long |
| 2015-04-13 12:45:30 | XOM | buy | $85.870 | long |
| 2015-04-13 12:46:06 | XOM | sell | $85.870 | long |
| 2015-04-13 12:46:47 | XOM | sell | $85.850 | long |
| 2015-04-13 12:46:47 | XOM | sell | $85.850 | long |
| 2015-04-13 12:56:54 | XOM | buy | $85.840 | long |
| 2015-04-13 12:57:02 | XOM | buy | $85.830 | long |
| 2015-04-13 13:00:29 | XOM | sell | $85.830 | long |
| 2015-04-13 13:05:55 | XOM | sell | $85.790 | long |
| 2015-04-13 13:06:33 | XOM | sell | $85.780 | 0 |
Comments
foldelinio_BOWS
Tombro, I don't trade the news. I'm not implying that this stock had good news and go long or vice versa. However, I do want to know what's going on in the stock I trade. I want to have an idea of who is buying and selling, if it is a stock for the retailers and momo chasers like all those sub 10$ microcaps or if it's a bigboard stock where it's algo vs. algo and the occasional execution trader.
Then, a trade is a trade. The markets have no timeframes and I'm willing to take and hold anything that I have edge in, be it for pennies or dollars.
As far as your second question is concerned, I have to disappoint you. It's not that easy. First of all, you have to understand options and synthetics in order to trade on this stuff. You have to get inside the other traders head.
That means you have to use options orderflow in context with all the other things going on in a stock. A sweep order is always a sign of urgency. I mean, when someone takes out three offers in order to get his position, he probably wants or has to trade NOW. If you want to hedge 4.2M shares, you are probably not a daytrader, so you look at the daily first.
What is it doing? Right, nothing. Why would you buy calls like your fighting for your life then? Someone just wanted to play the break over 86$ or whatever, but for this particular example it's been far less complex.
This trade was announced on 5 different sources, the stock has bounced agressively, so no way for shorts to wiggle out of their positions. Then action on wayyy OTM calls basically advertised on timesquare, of course everyone starts bidding. I jumped in for a couple of cents as it popped above an important level from yesterday.
So in summary, you can't analyze the options T&S on ToS at the end of the day and be like "hm...a lot of OTM calls traded today, so someone must know something. I'm looking for a long tomorrow." You have to get the info, either via newsfeed or a consolidated options ticker and look at the stock as the trade hits the tape.
An OTM call sweep will do nothing, when the stock is in a freefall.
Insider trades are usually deep in the money puts + stock for a synthetic OTM call (the SEC is not that stupid) or shorted ATM puts. For calls it's mostly about size and urgency of the trade in context of the overall tape and trade location.
Hope it helped
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Hi Fold, 1st off I thought you had excellent advice for Andy. I was wondering a few things. You seem to be very aware of the news that's happening for your stock, but it seems like most of your trades seem to be for pennies. Is that the plan cuz it seems like a stock moving on news would provide more than pennies if ya played it right.
2nd question...what are the implications of "42k May 90 calls bought via sweep". At first blush it sounds bullish, Is there some way that it may not be..like maybe its a hedge against a short position (I have no idea) or maybe a leg of some other kind of position? Just curious what your take was on.