Popular on eTradeWire
- Cummings Graduate Institute Celebrates New Doctor of Behavioral Health Graduates - 277
- 90% Of Learning In The Workplace Happens On The Job - 246
- Stonehurst Place hosts service members this 2021 Remembrance Day (UK & Canada) and Veteran's Day (USA) amidst newly published WWI history - 229
- Ashikaga Flower Park Celebrates 20 Years of Spectacular Seasonal Light-Ups - 215
- Club Nine Pets Launches Limited-Edition 2022 Collection for Indulgent Dogs and Pet Parents - 202
- Washing Machine Hoses: Water damage restoration may Happen - 174
- UNice Hair Drops The Best And Biggest Black Friday Deals 2021 - 151
- Are Rental and Sales Prices Contracting Or Will Demand Keep Prices Skyrocketing? - 139
- Teen Sensations Glam Squad Releases "Drippin'" feat. King Harris - 131
- The UK Clothing Brand That Is Growing Out Of Of Lock Down - 126
Similar on eTradeWire
- My Hidden Crypto Gem: The Defi DAO Fund
- Home Lender E Mortgage Capital Hosts Industry Event For Mortgage Professionals
- E Mortgage Capital Announces Home Lending Solutions to the State of Missouri
- Janover Ventures welcomes Sam Haskell, CFA to its Advisory Board
- Rare House of Picchiotti, Srl Emerald and Diamond Suite Offering
- Development Funding Cleared By Hfbs
- Dan Hollings The Plan Is Exploding !
- Option traders think Hertz stock could reach $30 soon
- Blue Baikal Set to Launch IGO for P2E Game Developers
- Fintech Startup Pioneers Automated Budgeting with Paid Bonuses
View the latest unusual options activity for AFRM stock
Option prices are a good indicator of stock price movements. However, even though options are traditionally thought of as a hedge instrument, due to their high leverage, they are also often used by large institutional buyers to capitalize on large stock movements.
You may not be able to tell from a glance, but not all option trades are created equal. Some carry more information than others - and unusual option trades are that type of trade.
More on eTradeWire News
- Jaclyn Cowart Joins RE/MAX Alliance Group
- Romantic Beauty Cosmetics To Launch Diverse New Collection At The Most Competitive Price
- New Film Shines Light on Squaw Valley & Disney's Collab with 1960 Olympics
- New TR75A Thermocouple Temperature Loggers from T&D
- Teaching With Simplicity Expands Resources For Math And English Language Arts Lessons
Unusual options activity is a type of trade being bought on the ask or sold on the bid, with unusual volume and/or trade size. This means that these are new contracts being traded, expressing a fresh opinion on the stock.
Why is this interesting? Well given a large enough trade and it being bought on the ask or sold on the bid it shows extreme urgency on the trader's side.
For example, let's look at a trade of 5,000 calls which had a bid and ask spread of $3.00 by $3.70 respectively, and the order was executed on the ask at $3.70.
What does that tell us?
The trader bought 5,000 call contracts, dropping $1.8M on the trade. Now, if they were patient and waited to fill the order in the middle of the bid and ask spread, say $3.35, they could have saved potentially $175K, but they didn't. To me, that says they have high expectations for this trade, and saving $175K is chump change.
A large purchase of call options carries a signal that there is a likelihood of a large move in the underlying stock.
Optionsonar is a cutting-edge service that provides investors with the latest unusual options activity in an easy-to-read format. The software has been exclusively available to institutional traders on Wall Street, but now it's available to you!
- My Hidden Crypto Gem: The Defi DAO Fund
- Hoffman & Associates Announces its Newest Associate
- Maní, in State of Yucatán, Named a 'Best Tourism Village' at UNWTO General Assembly
- Holabird's December Dreams: Premier Americana Auction will be held Dec. 17-19, online and in Reno
- Planejunkie.com announces a New Aviation Book & Print Portfolio by Keith Burns
- Garden City Realty recognizes its top agents of the month
- Annuity.com Endorses Brad Rhodes' New Book Protecting Your Retirement
- TruAmerica Multifamily Closes Debut Workforce Housing Fund Oversubscribed at $575 Million
- Learn Mutual Fund Investing As a Beginner with this New Book
- 6 Common Commercial Construction Projects
- Democrat Ángel Luis Vega declares Candidacy for Texas Comptroller of Public Accounts
- New Criminal Complaint Filed in Oxford High Shooting
- Work 365 announces integration with ConnectWise for subscription billing and invoicing
- Max Tucci auctions off Delmonico's Restaurant Memorabilia on HGTVs Everything But The House
- Toll Brothers at Montaine Offers Two Move-in Ready Homes
- Wyplay and Hoppr create targeted advertisement solutions with new monetization opportunities for TV operators
- Country By Choice: Premium Country And Rustic Styled Decorations For Your Home
- Mojo Pet Love: Give Your Pets The Love And Care They Deserve
- From Outer Space To The Big Easy: William Shatner Lands At Fan Expo New Orleans, January 7-8, 2022
- Gaviota Products: Give Your Home The Look And Style You Want