Over the past few hours, four options with a high volume relative to their open interest were detected. With the market volatility, it's crucial to stay informed on the latest options trends.
Among them is a block trade of 77,000 $Amazon (AMZN.US)$ call options that give the holder the right to buy the stock at $175 each by Sept. 20. The size of that trade far exceeds the contract's open interest of 3,189. That takes the volume to 24.15 times open interest. The seller stands to collect a premium of $191.27 million for the trade.
There is also a notable transaction is a block trade for 1,800 $Delta Air Lines (DAL.US)$ put options that give the holder the right to sell the stock at $50 each by July 19. The size of that trade far exceeds the contract's open interest of 107. That takes the volume to 16.82 times open interest. The seller stands to collect a premium of $284,400 for the trade.
A block trade 3,000 $Planet Fitness (PLNT.US)$ call options that give the holder the right to buy the right to buy the stock at $80 by Aug. 16 was likewise notable. The size of that trade far exceeds its open interest of 48. That takes the volume to 62.5 times the contract's open interest. The seller stands to collect a premium of $432,000 for that trade.
See below for more unusual options activities.
Notes:
Unusual options activity identifies a single option trade with a volume-to-open-interest ratio (V/OI) equal to or above 10, which means the volume of the trade is much higher than the existing positions. High V/OI often implies that a trader is opening a new position with an unusual amount. Options activities are filtered based on the following criteria:
Options trade with V/OI≥10, while OI of the contract must be ≥10.
Options trade with premium≥$50,000.
The underlying asset of selected options must be individual stock with a market cap≥$5 billion.
If there are at least 3 or more trades that meet all the criteria in the corresponding time period, an article will be generated at 11:30, 13:30, and 16:30 ET each trading day.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.
The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.