4x the normal contract volume trading and a focus in upside April calls. Normally averaging close to 3000 contracts, today we see 21,000 contracts on the tape and nearly all of this volume is in the calls. An impressive sweep took place at 1:12pm as a buyer lifted 4200 April 25 calls for $.20 and 3100 April 30 calls for 65cents at the same instant across a number of different exchanges. 10 minutes later 1500 of the Jan-08 27.5 calls traded as well, and the short term impact of this flow lifted the stock a quick dime from $24.70 to $24.80 as the potential hedge of nearly 300,000 shares was absorbed by the market. Sentiment data from the ISE confirms this flow was opening for a customer account, suggesting an aggressive view on upside in the name for the medium term.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.