August 25, 2019 09:16 PM RSS

Unusual Options Activity For Monday

  • Wall Street Rebel | Geoff Garbacz
  • 10/15/2018 7:52 PM
Unusual Options Activity For Monday
Here is a summary of key options movers from Monday's close. Several names interested us.

Options volume was led by CBOE Volatility Index Calls (VIX) calls that saw 97,245 of the November 20 Calls (11/21/16) trade along with 94,352 of the November 21 Calls (11/21/16 Calls). The VIX closed at $21.30 and is still above $20 but we think this is a really dumb trade. Why?

You want to buy the VIX before it spikes above $20 and sell the calls as soon as it begins to put it lower highs. It has put in lower highs on Friday and today. As such, we consider these VIX call buyers to be "dumb call buyers". I would lay money the VIX is back under $20 sooner than later.

Sprint (S) which peaked at $6.60 and is now at $6.28 saw aggressive call buying for next May as 50,093 Calls traded and it closed at $0.28. A move to $8 is a $1.72 move which is 27.39%.

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