Trending...
- Omnitronics launches Ecosystem Health Dashboard to enable proactive monitoring across dispatch environments
- Salestrics Introduces PraiseEngine: The AI-Native Review Engine Built to Fix Social Proof
- Meals on Wheels of the Greater Lehigh Valley Receives $15,000 PPL Foundation Grant to Expand Access
SAN FRANCISCO - PennZone -- Affirm's stock, a publicly traded financial technology company, captured substantial at the money call stock options expiring at the end of the year. Many traders use in-the-money stock options to leverage their exposure to the underlying stock. They are referred to as stock replacement trades as they require less capital to enter but are subject to the same level of directional risk as owning the underlying equity directly. Our unusual options activity research from this week dictates that option traders expect AFRM's stock price to reach $200 by the end of the year.
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 The PennZone
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!
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 The PennZone
- Lauren Merrell, Dale Sorensen Real Estate, announces price improvement for an extraordinary island retreat
- Portalz Publishes FES World First Architecture Introducing a New Cryptographic Platform
- Racquet Club of Philadelphia appoints Michael J. Sofia as new General Manager
- Cellofest Brings Free Cello Concerts and Community Events to Bethany Beach August 5–16
- Blue Sky Capital Strategies, LLC awarded Leasing and Financial Services agreement with Premier Inc
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!
Source: Optionsonar
0 Comments
Latest on The PennZone
- Walker's Realty and North Jersey Properties Introduce Extraordinary Luxury Estate for Rent in West Orange, New Jersey
- Extreme Heat Strains Home Appliances: Appliance EMT Offers "Summer Rescue" Relief
- Independent West Texas Metal Multi-Instrumentalist & Producer. "MAD CHAD™" Russell Surpasses 1.9 Million Project Interactions Via DFGS Productions
- No Download Needed: Goosechase Adds Browser Play to Every Experience
- HER Patio Productions celebrates one-year Anniversary of "Say Grace"
- Working Musicians Academy Partners with Black Dog Music Partners to Give Musicians Independent, Income-Producing Careers
- Omnitronics launches Ecosystem Health Dashboard to enable proactive monitoring across dispatch environments
- New Research Identifies "The Great Junk Transfer": 49% of Americans Would Rather Inherit Nothing Than Sort Through a Relative's Belongings
- Minus K Technology launches it Educational Giveaway for Universities and Colleges in the USA
- UK Financial Ltd Verifies Maya Preferred PRA Circulating Supply, Proving Its Eight-Year Promise of Under 1M Tokens After Chainlink Labs Agreement
- Anamorphic 3D Only Works on Fixed Screens. Loud! OOH Put It on a Moving Ad Van for Flood Re
- From DJ Booths to Disney: Orlando Author Ryan Tiffin Launches "Chasing Magic"
- Nola Blue Records Announces New Album from Sherman Holmes
- FDA Food Recall Notices After Outbreak Linked to 98 Hospitalizations: Practical Tips for Safer Grocery Shopping
- The 'Tax Squeeze': Betsson's Record Quarter Previews the Economics of Finland's 2027 Casino Market
- Colonial Nissan Helps Multiple Generations of the Community Find Their Next Vehicle
- ImagineX Acquires Payteros to Strengthen Digital Transformation Capabilities
- From Pizza to Playlists: Marty The Pizza Guy Delivers Three Delicious New Songs
- CAPO Supply Launches New Website Serving Western Pennsylvania and Eastern Ohio
- Meals on Wheels of the Greater Lehigh Valley Receives $15,000 PPL Foundation Grant to Expand Access

