Category: Unusual Options Activity

Data Source: barchart

Today some institution/fund purchased 20,434 contracts of Dec $255 strike calls (or the right to buy 2,043,400 shares of The Boeing Company (BA) at $255). The open interest was just 1,914 prior to this purchase.

Monitoring unusual options activity can be a useful tool. Large amounts of options being traded on a particular stock may provide some valuable insight into what the “smart money” is doing.

Checking unusual options activity on a regular basis can draw attention to stocks that would have otherwise been missed and can prompt traders to analyze why options volume has spiked for a certain equity. For example, a large option order could be done for a number of different reasons, sometimes they can even look deceptive. For the most part, options can be used to hedge an existing position or for speculation. Our job is to look at the underlying security and figure out why – before taking any action.

Data Source: barchart

Today some institution/fund purchased 2,756 contracts of Mar $45 strike calls (or the right to buy 275,600 shares of Intel Corporation (INTC) at $45). The open interest was just 367 prior to this purchase. Continue reading “Unusual Options Activity – Intel Corporation (INTC)”