What’s going on here?

M

mac

• Regarding ENPH (NASDAQ:ENPH), we observe a call option trade with bearish sentiment. It expires in 126 day(s) on May 21, 2021. A trader bought 752 contract(s) at a $320.00 strike. The trader or institution spent $868.5K on this trade with a price of $1155.0 per contract. There were 111 open contracts at this strike prior to today, and today 6182 contract(s) were bought and sold.


Can someone help me understand this trade?
First of all. I thought you couldn’t tell if a contract was bought or sold.
Why such a high strike price? Stock closed down over 8% to 190.59.
Don’t understand the bearish sentiment!!
 
Calendar Spread, check $320 20-Aug-21 calls as well, close volume & activity (6.5k contracts).

He/She is probably spreading $320 between May-21 and Aug-21, who is on the debit side and who is on the credit side, it's anyones' guess
 
narafa said:
Calendar Spread, check $320 20-Aug-21 calls as well, close volume & activity (6.5k contracts).

He/She is probably spreading $320 between May-21 and Aug-21, who is on the debit side and who is on the credit side, it's anyones' guess
More...

ok, That makes sense. Don’t know how they get “bearish” sentiment tho.

Gonna watch this close. Thanks
 
If you are long such a spread, i.e. Net Debit (Bought Aug and Sold May), then you should be clearly Bullish and vice versa. This could be part of a position hedge as well, i.e. you could be short the stock and long the spread (Net Debit) to offset losses from the stock upside.
 
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