OptionsDelta
OptionsDelta
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avatarOptionsDelta
2023-03-15

If you win $10 million in the lottery, will you continue spend $5 million on the lottery?

Yesterday Biden expressed confidence that he would show results in fighting inflation. I thought CPI had to fall to the 5.xx%. As a result, CPI in February was unchanged as expected at 6.0 percent and core was also unchanged at 5.5 percent. Month-on-month, it was slightly higher, at 0.5%.There is a long way to go in the fight against inflation, and a quarter-point rise cannot be missed.$Financial Select Sector SPDR Fund(XLF)$ Source of titleclosed $XLF 20230616 32.0 PUT$ $XLF 20230616 32.0 PUT$ ​roll $XLF 20230616 28.0 PUT$
If you win $10 million in the lottery, will you continue spend $5 million on the lottery?
avatarOptionsDelta
2023-12-27
1 $Alcoa(AA)$ reasons for the rise similar to Macy's acquisition drive department store sector. I have been watching the trend of the metal sector since Nippon Steel announced its acquisition of $U.S. Steel(X)$ , and then I waited for this big 8000 lot CALL option order $AA 20240216 40.0 CALL$ . But as a rule of thumb, a large call order is 50-50, so I'd still go with the sell put: $AA 20240119 33.0 PUT$ 2 $Marathon Digital Holdings Inc(MARA)$ The bears have finally struck, 20,000 lots of big PUT orders
avatarOptionsDelta
2024-01-03

When stocks plunge, institutions may not like to buy put options to short them

$Coinbase Global, Inc.(COIN)$ After a two-day plunge, the iv of COIN's January expiration options rose above 100%. The most active trading volume is in options expiring in the current week, because options become more expensive due to iv and are more suitable for sellers.It is worth noting that yesterday's call/put was still not low. Most call options are traded, and even buying call options is higher than selling call options. This situation may also be because the iv is too high and the put price is expensive, so institutions prefer to short sell call. However, around 4:00, some people bought puts expiring at 145 this week $COIN 20240105 145.0 PUT$The most trad
When stocks plunge, institutions may not like to buy put options to short them
avatarOptionsDelta
2023-03-09

Show the cards! Market trends prior to March 24:bearish!

After more than a month of sideways, bulls and bears are impatient, Powell is also impatient, even said to speed up the pace of rate hikes, so the March rate hike probability of 50 basis points into 70%. ​Yesterday's article mentioned that there are two opinions in the market:Ultra-hawkish rate hike: 50 basis point rate hike probability in MarchDovish: The Fed can live with 3% if inflation doesn't fall quickly to 2%.Before yesterday, the market favored 2 more than 1.At the start of the year, the consensus was for a longer rate rise, not a higher one. There is a consensus that inflation cannot fall quickly, but there is a sense that rate rises need to be gradual and Mr Powell is unlikely to reverse his plan for gradual quarter-point increases. If inflation cannot come down quickly, the Fed'
Show the cards! Market trends prior to March 24:bearish!
avatarOptionsDelta
2024-05-20

Time to copy the homework

$NVIDIA Corp(NVDA)$ Summarizing option flows across the semi space yields mixed signals - two bullish, one bearish. But looking at broader index flows, the bias seems tilted towards strength. Let's assume NVDA's earnings are unlikely to disappoint.With expected earnings move around 7.5% and ATM implied vol around 4.4%, calls look richly priced, so put selling is preferred. Any strike below 850 seems a safe zone.AMD: Large buy in the $AMD 20240524 175 CALL, clear bullish tiltSOXX: Large buy in the $SOXX 20240621 220 PUTS$, clear bearish viewSOXL: Large buy in the $SOXL 20240524 44.5 CALL$ , an aggressive bullish bet. Notably, this large buyer swept up calls right at Friday's intra
Time to copy the homework
avatarOptionsDelta
2023-04-19

Institutional try to manage volatility with 8-leg option strategy

Here's how this bizarre option strategy was discovered: $JPMorgan Chase(JPM)$ soared last week on bank earnings, but I didn't see a significant move in JPM options, which I shouldn't have. Then I checked the move in the $Financial Select Sector SPDR Fund(XLF)$ :$XLF 20230421 33.5 CALL$ Institutions placed 10, 000 lots of near-term options expiring next week on the day before the JPM's earnings report, closed the next day and doubled the price at a rough estimate. It's a list you can't find unless you keep an eye on it.It can be seen that in some significant volatility on the institutions prefer to use ETF options trading. W
Institutional try to manage volatility with 8-leg option strategy
avatarOptionsDelta
2023-04-29

A safe strategy without fear of FOMC volatility

Every FOMC, people are always worried about being skewered by market events, so they are not so confident in the trading before the FOMC.But this time it was different. The institution had the answer first:sell $MSFT 20230519 310.0 PUT$10,000 lots of options, which means hundreds of millions of dollars of margin. When I saw the option change the only thing I thought was all in Microsoft. Microsoft reported earnings earlier, and they were surprisingly good. That being said, you don't have to be so aggressive and put the sell put at a lower strike price, like 280 or 260.I want to move on to the other stock observations of the week, which are somewhat subjective.I'm going to make an unpleasant judgment for a
A safe strategy without fear of FOMC volatility
avatarOptionsDelta
2023-04-13

Maximizing Profits: How Institutions Trade Microsoft Earnings with Options

Yesterday, Microsoft options change appeared consecutively several groups quite interesting strategy, once again gave a very clear guide to the recent trend of technology stocks is very instructive.There's good news and bad news for Microsoft's price action.Good news: Several institutions are somewhat bullish on Microsoft.Bad news: One institution is heavily bearish on Microsoft.You may be in a hurry to see why the opposite conclusion would be interesting, but hold on. The general split view is not enough for me to analyze. For example, some institutions have bought calls and some have bought puts. This divergence means that the institutions are split on the fundamentals, or that some of them know something they don't know. If that happens to be the case during earnings season, then for in
Maximizing Profits: How Institutions Trade Microsoft Earnings with Options
avatarOptionsDelta
2024-04-29

Elon Musk's Travel Plans Leaked, Bulls Quietly Buy Huge Call Options Betting on $250!

TL;DR: A mysterious institution is bullish on Tesla, expecting the stock price to explore $210 in June and return above the year's high of $250 by August.On the afternoon of April 28th, a sudden news report revealed that Elon Musk had been invited to visit China. The main purpose is to discuss the deployment of Tesla's self-driving technology in the Chinese market. Although there is no specific timeline, judging from official Weibo statements and the Tesla app's purchase page descriptions, cooperation between the two parties seems highly likely.On Monday, Tesla finally reversed its sluggish performance this year, with its pre-market stock price surging 12%, showing strong signs of a trend reversal. Previously, Tesla's option big orders were predominantly bearish, with the main strategy bei
Elon Musk's Travel Plans Leaked, Bulls Quietly Buy Huge Call Options Betting on $250!
avatarOptionsDelta
2024-03-08
mark 3 option transactions, all of which are sell call: $TQQQ 20240419 70.0 CALL$ $SOXL 20240517 50.0 CALL$ $SOXL 20240816 70.0 CALL$ TQQQ sell exercise price 70 I can understand. An out-of-the-money option on delta 0.2 equates to a monthly price move of less than 16%, and the leveraged ETF will fall faster if it moves sideways or down.The SOXL sell ATM call is a little harder to understand, though. Selling at-the-money call options on leveraged ETFs is similar to being bearish, and if chip stocks don't rise, the market has a high probability of a correction.If there are signs of a pull

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