- Ticker: MSFT
- Sentiment: BULLISH
- Trade Type: Call
- Expiration Date: 2021-01-15
- Contracts traded: 11,800
- Total traded: $13,216,000
- Strike Price: $235
- Stock Price: $212.56
- Volume: 11,824
- Open Interest: 1,021
- Notes: bought on the ask out of the money
Single Leg Cross Non ISO
Transaction was the execution of an Intermarket Sweep electronic order which was “stopped” at a price and traded in a two sided crossing mechanism that does not go through an exposure period.
Questions to consider when looking at unusual option activity
There are many possible reasons why the original trader placed the trades that are being detected by our unusual option scanner. To help you with your due diligence before committing to this smart money there are a few questions you should ask yourself about the underlying:
- Is this trade a stock replacement ahead of earnings?
- Is there M&A talk surrounding the underlying?
- Could there be a government ruling (domestic or abroad) or new law that is coming out that would affect the industry the underlying is in or the stock itself?
- Is there talk that an activist investor will be taking a big stake in the underlying soon?
- Is there an investor’s conference or analyst day surrounding the underlying?
- Are you noticing unusual option activity in the whole sector or just this stock (sector rotation)?
- If this is a drug company, have they planned for an FDA announcement that is coming up?
- Has there been a lot of positive or negative news said about the underlying from research firms, hedge fun or other influential establishments?
- Does this stock often correlate with the S&P 500?
Of course this is just a subset of the array of other reasons that a trader could have to place some of these unusual trades.