Well, it looks like our mystery trader knew what they were doing. I suspected as much. The only reason I saw this trade (it was 12:34 EST not 11:34, I got confused) was because I was considering taking Chewy long for the ER around $57. This trade that I posted above was a huge red flag for me and as such, I took no position. This is why it's important to always watch the options, especially on a high vol issue the day of an earnings report. It doesn't happen all the time, but when it does...So this trade...
If someone was that convinced CHWY was gonna drop below $55, why would they wait until just past 11:30 EST when it was pretty much near the day's low to execute the trade?
Why not do it when Chewy was at $60?
To risk $660,000 to make $1,209,000 max if it drops below $50, one has to think they know what they are doing. Right? You'd think they'd have known this last night and jumped at the open. I mean if your that convinced, why wait to get in a few percent cheaper if it went up out of the gate? They could have had the same trade for at least 30% less, or about $480K+/-.
No. No one does a trade like this. Someone got a phone call from someone who caught a glimpse of that report. I'd bet money. Either that or they have some super-intelligent algorithm that could discern that from today's price action (highly doubtful), or they're just some ultra wealthy gambler who doesn't care if they lose $660K. I'm going with the phone call.
I guess we'll see what it does.
A lot of people have bought this dip in the last few weeks.
$57.21 now.
What a game.
I should have put Chewy in granny's shorts but I just couldn't do it with it already that low.
It looks like it dipped down to $50.50 earlier, on a smaller position our mystery trader could have locked in his profits, assuming it doesn't dip below $50, by buying those shares. I doubt he could have bought 250K shares though at $50.50 premarket though. Either way, if it holds this $51.50 level they'll cash out with just shy of a $1M. Maybe a little more. It'll depend on how they close the trade and what the premiums are. And obviously where CHWY ends up trading after the bell.
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Stoney!!!!!!
Now they're talking a 4rth shot to be "fully vaccinated". Wtf?!!! Will it ever end? If Russia invades Ukraine, I say we invade Wuhan.... just for general purposes.
Hey speaking of Ukraine... if Putin does roll across the border, we'll see a big market reaction. Down, up, down, up... no one will know. The best play will be options on the Vix. (We're over Stoney's head here I know)... but here's the deal and I even bookmarked the web page....
Monitor the one week weather forecasts for Ukraine because the ground will have to be frozen solid for all those tanks to roll.
See... learn from history kiddo's.
This week the temp will be 38F, so no worries. Putin will need at least one week of solid 20's before he'll move.
https://www.weatherwx.com/forecasts/ua/kiev.html
Ok, I'll shut up now. I'll let Stoney post 30 new stocks and 15 Youtubes.
