Redfin Option Alert: Jan 5 $9 Calls Sweep (39) near the Ask: 1391 @ $0.25 vs 249 OI; Ref=$7.94
Portfolio Pulse from Charles Gross
There was a notable options trade for Redfin Corporation where a sweep of 1,391 call options for a January 5th expiration with a $9 strike price was executed near the ask price at $0.25 each. This is compared to an open interest of 249 for the same option, indicating a significant increase in trading volume. The underlying stock reference price at the time was $7.94.
December 13, 2023 | 7:28 pm
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The large volume of call options for Redfin suggests increased investor interest or speculation that the stock price may rise above the $9 strike price by the January 5th expiration date. The stock reference price at the time of the trade was $7.94.
The purchase of a large number of call options at a strike price above the current stock price typically indicates a bullish sentiment on the stock. The fact that these options were bought near the ask price and the volume was significantly higher than the open interest suggests that investors are expecting the stock price to increase. This could lead to a short-term rise in the stock price as other investors may interpret this options activity as a positive signal.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80