Why are institutions numb？
I mentioned last week that the China Concept etf has a large call option order. It is a pity that the institution chess is a step faster and bought the day before the game policy was introduced. Another low is the worst thing after the bottom.
Because of various surprises in the stock rally has been repeatedly delayed, continued to hover at a low level. So it's not surprising that this week's options trading, institutions and big players are more likely to choose to sell put rather than buy call:
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When stocks hit bottom but do not bounce back easily, selling at-the-money or in-the-money puts is a more suitable bottom-hunting strategy than outright buying call options.
It seems to me that the two constitute a sort of ranking strategy. Buying a call option is the second step in buying the bottom. By looking at the loss of value from the first put sale, you can better determine whether it is worthwhile to buy a call option or stock further.
Selling at-the-money puts represents a strong trend, a consensus bottom, but it needs to stay on the sidelines. So it's interesting that institutions are moving from buy call to sell put in the face of a policy shock.
By the way, BABA can continue to sell put70, and I see big sell put orders at this price every week.
$Nike(NKE)$ $earnings plunge is also a good time to sell put. The overall transaction of options is dominated by call options, in which the transaction of sold call options is higher than that of bought call options. Judging from the transaction of large orders, the sell put is very aggressive, and the exercise price is about 120 within the price. I choose a slightly lower $NKE 20240119 115.0 PUT$ . I think there may be a high probability of not reaching this price to see where it can rise, and if it does not rise, it will be closed manually.
MARA's put out his position. Because it is parity, it is almost the same as the midweek price. MARA's recent trading pattern is similar to Nike, which is also dominated by call options trading, but the buy trade is absolutely dominated. I think it may be difficult to have a decent decline before the Bitcoin ETF launches.
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