Big Bullish Gamble Into Year End

This is definitely the trade of the week. Someone is expecting good things to happen into the year-end and he is betting a lot of money on the bullish break out. Let’s review this trade.

The trade was registered at 6:48am PST, or 18 minutes into the trading session. The option trader purchased over 127K of $310 20 December’19 calls!

SPY, Option Chain

SPY, Time and Sales

The largest lot came in at 6:48am and registered the purchase of 54,224 calls at the price slightly above the Ask price. This was a prearranged transaction between a large fund and a market maker.

The total cost of this bet is above $17m!

Please note that the trader picked the $310 strike for his call options, which is clearly above the prior resistance level. He is expecting the market to break out and get over $310 by mid December.

SPY, 1d

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