WW International Option Alert: Jan 19 $8.5 Calls Sweep (41) near the Ask: 2877 @ $0.45 vs 86 OI; Ref=$7.79
Portfolio Pulse from Charles Gross
There was a notable options market activity for WW International, with a sweep of 2,877 call options at a strike price of $8.5, expiring on January 19th, traded at $0.45 each. This was against an open interest of 86, indicating new positioning. The stock reference price at the time was $7.79.
January 03, 2024 | 7:48 pm
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The large volume of call options for WW International suggests bullish sentiment among traders, expecting the stock to rise above the strike price of $8.5 by January 19th. The reference stock price was $7.79 at the time of the trade.
The trading of a large volume of call options at a strike price above the current stock price typically indicates that traders are expecting the stock to appreciate in value. The fact that these calls were traded near the ask price and the open interest was significantly lower than the volume of the trade suggests that this is a new position being opened, rather than closing or rolling of existing positions. This could lead to a short-term increase in the stock price if the sentiment is shared by the broader market.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100