- Sentiment: BEARISH
- Option Type: Regular Trade
- Trade Type: Put
- Expiration Date: 2021-01-15
- Strike Price: $20
- Volume: 10,442
- Open Interest: 18,963
- Total dollars traded: $2,796,500
- Notes: bought above the ask at the money
Dark Pool Order
This trade took place outside of national best bid and offer (NBBO). Indication that it could be a darkpool order (private forum or exchange offering liquidity off public markets).
What are Sweep Trades and why are they interesting?
Sweep trades are typically large orders that are broken into a number of different smaller orders. They are filled much more quickly by being split on multiple exchanges. A sweep order instructs the broker to identify the best prices on the market, regardless of offer size, and fill the order piece-by-piece until the entire order has been filled.
These types of orders are especially useful for option traders who prefer speed over the lowest possible price.
Why are these types of trades important?
- Since sweep trades are typically large blocks, it means that the trader placing the order has some major financial backing.
- Sweep orders also indicate that the buyer wants to take a position in a hurry, which could imply that he or she is anticipating a large move in the underlying stock’s share price in the very near future.