Unusual Options Activity in Danaos Corp (DAC)
Today, April 11, 2022, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in HMHC, which opened at $88.7.
- There were 3672 contracts traded on the $105 strike call option dated for May 20th, 2022.
- This represents an 300x increase in new volume.We need to check how OI sustains for tomorrow. However, take a look at the bearish and bullish premiums on the day
- Despite DAC being down nearly 4% at the time of writing, large calls are coming in.
- On the Unusual Whales blog is a report on floor traders' performance. Here is a snippet:
- More interestingly, we found that floor traders do not bet on crazy far OTM calls. Instead, most of the purchased weekly calls are ~10% ITM, with about a 40% chance to turn a profit. And when it comes to OTM calls, nearly half of these trades end up making gains and roughly a third of them can hit 50% and above.
Seen above are the noteworthy options in DAC from the Unusual Whales flow tool.
Take a look at the above trades given the premiums on the day. These are clearly quite unusual.
Unusual Options Activity in iShares China Large-Cap ETF (FCI)
Again in the NYSE, we saw unusual or noteworthy options trading volume and activity in FCI.
- There were 1001 contracts traded on the 8/19/2022 35 Calls.
- This chain has high OI, so users may be closing their positions on this new volume (STC). We need to be aware of these type of traders in the flow. Most of the high premium sorted trades on FCI are all bullish, but due to OI, numerous of these traders may be following. A check in OI will be necessary tomorrow. Currently it is up 381 on this strike since last close.
- Chinese large caps have been hit extensively hard, and people often try and play the upside. This floor trader is likely no different.
- A tip from the flow: Trades appended with 🛍️ can be intuited as bought or sold to open. This determination is made if the size of the trade was greater than the chain's open interest. Only trades that can be positively identified as being bought or sold to open will be marked as such (with the 🛍️ symbol). Be mindful! Trades without the 🛍️ symbol might still have been bought or sold to open!
Seen above are the noteworthy options orders in FCI from the Unusual Whales flow tool.
Seen above is the aforementioned chain’s historical volume, in red, and open interest, in blue, as bar charts behind the requisite bid and ask, in a light blue and darker shade, respectively.
The open interest on these contracts has not changed since that initial volume spike today morning (refer to the first image). As the volume today was higher than the open interest, it can be intuited that these contracts were potentially bought to open.
However, throughout the day, traders may be looking to exit on this chain, as well, or exercise the contracts (for any reason), so only by looking back at the open interest tomorrow can we know as a matter of fact.
Unusual Options Activity in Momentive Global Inc. (MNTV)
Finally and again, in the NYSE, we saw unusual or noteworthy options trading volume and activity in MNTV:
- There were 23920 contracts traded on the 6/17/2022 18 strike call.
- This is an interesting trade. You can see on March 22 the traders sustained nearly 50k in volume to OI the next day, meaning whales kept in their contracts
- These whales have been quite profitable so far.
- Numerous traders came in today, but we’ll watch OI and see how things change for tomorrow to determine
Seen above are the noteworthy options in MNTV.