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Strategies & Market Trends : LPL -- leader in World's TV Industry
LPL 5.010+3.9%Oct 31 9:30 AM EDT
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To: Cooters who wrote (41)1/25/2021 6:43:06 PM
From: chessboard_andy   of 76
 
Lot of activity in options, particularly July 17.5s. . .
First, it wasn't me. I finished closing out the vast majority of my trading positions last Thusday. I am content with positioning through earnings and did not even look today.

For a while there, I felt alone on an island for some of my contracts. The size of the open interest has broadened quite a bit recently but it is still pretty darn thin.

Now someone is truly on an island with that -LPL210716C17.5 position. (Prior open interest was 27 contracts all of which traded on Friday.) Today's volume was 1,416 contracts. Looks to me like somebody decided they were willing to take whatever they could get at $0.20. Buying was pretty consistent with blocks of 40-70 contracts throughout the day. Something funny/fishy happened at 11:13. 40 contracts traded with $0.20 open and close and $0.53 in the middle. All other blips were minor, and the vast majority were buys for $20 per contract.

Assuming there was a bit of tag-along buying, somebody is making a very aggressive $25,000 bet. If we see a spike open above $12, it will be interesting to watch how much if any of that trade is exited in the short term. That will be an indication of someone's conviction of at least approaching those levels over the next two quarterly reports.

There are almost zero contracts trading above the $12.50 strike, and I expect it is going to be very difficult to find a market for those contracts in the short term absent something really fun happening tomorrow. The $0.53 print may have been a random aberration, but I suspect a nefarious print so that the contract range shows $0.17-$0.53 rather than $0.17-$0.23. Even if it wasn't coordinated, careful watching of the order book could have gotten that print.

Andy
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