Unusual Options Activity in Coinbase Global, Inc. (COIN)
Finally, in the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity in Coinbase Global, Inc. (COIN), which opened today at $205.38.
- There were sweep-to-fill orders on the $220 strike call options dated for February 25th, 2022, bought to open above the ask at a spot price of $8.00 with a bid-ask spread of $7.40 to $7.90.
Please note, Coinbase reports its earnings today, February 24th, after market close.
As stated, these orders were marked as a “sweep”. An options sweep (or sweep-to-fill) occurs when a broker splits an order into many parts in order to get the best possible pricings currently offered on the market.
- These orders can often be filled across multiple exchanges and the broker will continue to fill the order lot by lot, always for the best possible price, until the order is completely filled.
- Sweeps might stand out because they imply some entity (or entities) wanted to enter specific options contracts regardless of their price, as they were focused only on having their entire bulk order filled as quickly as possible. While the magnitude of sweeps might stand out, each one must be investigated thoroughly to understand what the sentiment of a trader is as compared to the overall flow.
78.1% of the premium traded is in bullish bets, with 72.1% of the premium traded is in calls, with 64.8% as ask-side orders. The put call ratio for Coinbase is 0.37, which is bullish.
A tip from the flow: The put/call ratio (P/C) is put volume divided by call volume. Put/call ratio is important and can be an indication of sentiment shifting. A P/C greater than .7 means more puts are being bought than calls, so the trend is getting bearish. A P/C of .7 to .5 is becoming more bullish. (This distinction is made because more calls are often traded than puts, so a P/C of 1 is outside of the median.)
Unusual Options Activity in EverQuote, Inc. (EVER)
Today, February 16, 2022, in the Nasdaq Global Market Composite (NasdaqGM), we saw unusual or noteworthy options trading volume and activity in EverQuote, which opened at $16.54.
- There were 2,277 contracts traded on the $15 strike put option contract dated for February 18th, 2022 bought to open close to the ask at a spot price of $1.15 with a bid-ask range of $0.80 to $1.30.
Please note, EverQuote reporting its earnings on today, February 16th, 2022, after market close.
Additionally, these orders were spotted in the new Unusual Whales hottest chains page with a high acceleration factor; this implied that more orders outside of a standard deviation were being opened on this chain.
Additionally, Zacks reported on what to expect from EverQuote’s upcoming earnings report.
As stated, the volume on this chain is surpassing its open interest. Read this Twitter thread to learn more about why this is significant.
Unusual Options Activity in Macy's, Inc. (M)
Among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Macy's, Inc. (M), which opened today at $24.73.
- There were 6,192 contracts traded on the $33 strike call option dated for March 18th, 2022, bought to open at the ask at a spot price of $0.56 with a bid-ask spread of $0.55 to $0.57.
- Given the nature of this spread, it is not entirely possible to intuit as to whether these contracts were bought or sold to open, but it is known they were at least to open given the size of the order of 6,192 was greater than the chain’s open interest of 1.2K (explained in greater detail below).
- Please note, Macy's reporting its earnings on today, February 22nd, 2022, before market open.
A tip from the flow: Trades appended with a briefcase emoji 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 briefcase).
- Be mindful! Trades without the briefcase emoji might still have been bought or sold to open! You may also watch this video to see how to track these kinds of opportunities in the Unusual Whales flow.
- Furthermore, just because these orders were indeed opened, it cannot be absolutely known whether these calls were sold to open or bought to open.
92.71% of the premium traded at the $30,000 levels are in bullish bets, with a great majority of betting being in call premiums. Furthermore, the $5,000 premium levels are in bullish premiums at 69.01%, with a similar amount of call and put premiums traded. As can be seen, the overall options order flow on Macy's is bullish.