Unusual Options Activity in Dynatrace (DT), Energy Transfer LP (ET), and Halliburton (HAL)


Unusual Options Activity in Dynatrace, Inc. (DT)

Today, January 6, 2022, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Dynatrace, Inc. (DT), which opened at $52.65.

  • There were 12,040 contracts traded on the $60 strike call option dated for February 18, 2022, traded at the bid
  • Additionally, there were 9,800 contracts bought to open on the $55 strike call option for the same date
  • These orders came in tagged as “floor.” Floor traders work on the floor of an exchange. When a floor trader executes a trade, exclusively for their own account, it must be reported on an exchange by the “floor” tag
  • On the Unusual Whales blog is a report on floor traders’ performance. Here is a snippet: More interestingly, we found that floor traders do not bet on crazy far OTM calls. Instead, most of the purchased weekly calls are ~10% ITM, with about a 40% chance to turn a profit. And when it comes to OTM calls, nearly half of these trades end up making gains and roughly a third of them can hit 50% and above

Seen above are the noteworthy options in Dynatrace from the Unusual Whales flow tool.

These orders come after BNK Invest reported that: “In trading on Wednesday, shares of Dynatrace Inc (Symbol: DT) entered into oversold territory, hitting an RSI reading of 29.1, after changing hands as low as $53.365 per share.”

0106 uw2

Seen above is the aforementioned chain’s historical volume, in red, and open interest, in blue, as bar charts behind the requisite bid and ask, in a light blue and darker shade, respectively.

The volume, as such, is entirely novel and overshadows any previous open interest on the chain, implying these contracts were in fact either bought or sold to open, not closed.

To view more information about DT’s daily flow breakdown, click here to visit unusualwhales.com.

Unusual Options Activity in Energy Transfer LP (ET)

Again in the NYSE, we saw unusual or noteworthy options trading volume and activity in Energy Transfer LP (ET), which opened today at $21.33.

  • There were 10,000 contracts traded on the $9 strike call option dated for January 14, 2022.  The open interest on this chain was approximately 7,000 contracts in circulation as of this morning’s open
  • Additionally, there were 10,000 contracts traded on the $9 strike call option dated for January 7, 2022, and its open interest was approximately 24,000 as of this morning
  • Therefore, it can be interpreted that the $9 call options for January 14 are being bought to open, and those expiring tomorrow, January 7, are being sold to close. This deduction can be confirmed by looking at the open interest on the chain tomorrow, as we have reported elsewhere
  • A tip from the flow: Trades appended with ?️ can be intuited as bought or sold to open. This determination is made if the size of the trade was greater than the chain’s open interest.  Only trades that can be positively identified as being bought or sold to open will be marked as such (with the ?️ symbol).  Be mindful! Trades without the ?️ symbol might still have been bought or sold to open!
0106 uw3

Seen above are the noteworthy options orders in Energy Transfer from the Unusual Whales flow tool.

These orders come after our previous reports where we confirmed that traders had in fact sold to close $8.5 strike call options.

0106 uw4

Seen above is the aforementioned chain’s historical volume, in red, and open interest, in blue, as bar charts behind the requisite bid and ask, in a light blue and darker shade, respectively.

The open interest on this chain remains higher than the volume thus far today, particularly from this order, so therefore it cannot be established whether these orders were opened or closed from open interest alone.

However, with the deductions established above, as we know these orders came in together with the January 14 expirations, they can be assumed has having been closed today.

To view more information about ET’s flow breakdown, click here to visit unusualwhales.com.

Unusual Options Activity in Halliburton Company (HAL)

Finally and again, in the NYSE, we saw unusual or noteworthy options trading volume and activity in Halliburton Company (HAL), which opened today at $25.98.

  • There were 4,800 contracts traded on the $25 strike put option dated for January 21, 2022
  • Additionally, there were 4,800 contracts traded on the $25 strike put option dated for February 18, 2022
  • By contrast of the previously reported unusual options, the shorter dated strike for January 21 is not being closed here, as its open interest was approximately 3,000 this morning, and therefore this volume is novel, implying the contracts were in fact bought or sold to open
  • Assuming this is the case, this strategy is a calendar spread. A calendar spread is opened by selling a closer dated position to collect a credit and then purchasing the same strike further out to “protect” that up-front short-dated position. This position profits more from higher IV close to the date of the short position, such as by an upcoming earnings report
0106 uw5

Seen above are the noteworthy options in Halliburton from the Unusual Whales flow tool.

These orders come before Halliburton reports its earnings on January 24, 2022.

0106 uw6

Seen above is the aforementioned chain’s historical volume, in red, and open interest, in blue, as bar charts behind the requisite bid and ask, in a light blue and darker shade, respectively.

The volume today has overtaken the open interest, and as this was from the solitary order above, thus far, it can be intuited these were “to open” transactions.

To view more information about HAL’s flow breakdown, click here to visit unusualwhales.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Copyright © 2022 Billionaire Club Co LLC. All rights reserved

Chat
Loading the chat ...