Deep OTM Unusual Options Could Mean A Lot

JacksNiffler
04-28

On April 26th, there were unusual orders, but looking at a few with especially large trading volumes might not reveal much, because major technology companies happened to release their financial reports that week, and it was also Friday, so some investors would adjust their positions, roll over contracts, and some would close positions.

If more attention is paid to the movements of unclosed orders that are in the money (especially deep in the money), one might be able to detect some large orders.

There are investors starting to buy the $55 calls for $Tesla Motors(TSLA)$ with an average price of $20.81, betting on a rise above $170 within a month.

After the financial report led to a sharp drop, there are investors who have bottom-fished the $380 calls for $Meta Platforms, Inc.(META)$ priced at $72.16, expecting a rise above $452 within three and a half months.

The hotel giant $Hilton(HLT)$ has seen large orders buying the $185 calls for October, currently priced at $202.11, which implies a bet on a rise to $213 within six months;

Additionally, there is a company in the pet food industry, $Petco Health and Wellness Company, Inc.(WOOF)$ , where large orders have been placed for the $2 puts expiring on June 21st. Given the current low price of $1.57, this is essentially a very bearish bet.


Will You Bottom Meta at $400?
In contrast to Tesla, Meta's first-quarter performance greatly exceeded expectations but provided a pessimistic outlook. During the earnings call, Mark Zuckerberg spoke more about the outlook for AI, continuing to increase investments in artificial intelligence, and expecting further increases next year. Meta lost 15% in the extended market. ---------------- Will Meta continue to fall after the plunge? What's your target price for Meta? Will you bottom Meta at $400?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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