Would you make these bets?

S

smile

It's fun to look at some of the biggest option bets being made and try to dissect them.

Of course we don't know what else these traders may have in their portfolio or the reasons behind the trades.

But we can consider under what conditions we might make a similar trade.

The ABEV calls and AMD puts look especially interesting.
 

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Most big options trades are hedges/insurance to holding the underlying from fund managers, as opposed to out right speculations/bets o_O
I think I read that somewhere, not sure how accurate or consistent that statement is though.
 
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Also by looking at the bid/ask and the price of the transaction you can see if it was selling or buying. But I'm not 100% sure.

  • Sold 42,816 AMD Oct16 2.00 puts at $0.08 (bid/ask 0.08/0.11)
  • Bought 23,961 ABEV Nov20 5.00 calls at $0.25 (bid/ask 0.10/0.25)


:)
 
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Also, a time stamp within seconds and the same number of contracts indicates 2 or more trades that are connected (legs).
 
lawrence-lugar said:
Most big options trades are hedges/insurance to holding the underlying from fund managers, as opposed to out right speculations/bets o_O
I think I read that somewhere, not sure how accurate or consistent that statement is though.
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This seems correct to me, especially given the size of the trades.

Some of them though are actually huge bets on direction by very confident speculators.
 
smile said:
It's fun to look at some of the biggest option bets being made and try to dissect them.

Of course we don't know what else these traders may have in their portfolio or the reasons behind the trades.

But we can consider under what conditions we might make a similar trade.

The ABEV calls and AMD puts look especially interesting.
More...


Im surprised AMD still gets attention. I would have thought by now someone would have come and already bought out that company....AMD used to be one of the best holdings back 15+ years ago now no one cares for it....maybe one day though it will come back to its dot com days...
 
S2007S said:
Im surprised AMD still gets attention. I would have thought by now someone would have come and already bought out that company....AMD used to be one of the best holdings back 15+ years ago now no one cares for it....maybe one day though it will come back to its dot com days...
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Once a tech high-flier crashes I don't think they ever have come back. I cannot think of an exception.




:)
 
OTM-Options said:
Once a tech high-flier crashes I don't think they ever have come back. I cannot think of an exception.




:)
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there are some that came back, a handful...


I remember apple back in the day when no one wanted it, it was a garbage stock.......however the largest position I took in that stock I remember that time like it was today, I went long 100 shares around $77, the day I bought it I remember that night steve jobs was being investigated for some stock options probe...I think the stock fell to the 60s, I ended up selling around $74 a share or a loss of a few hundred dollars....now take a leap forward, that $7700 buy would be worth about $84,000 today....however I doubt I would have held that long, I would have probably sold after a few thousand dollars worth of profits...

But some stocks I know that have come back are

MU
AMZN
MCK
AAPL
 
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